**U.S. Commercial Real Estate Pricing Breaks Five-Month Streak of Annual Gains**
U.S. commercial property pricing declined in April, ending a five-month streak of year-over-year gains. According to MSCI Real Assets, the RCA CPPI National All-Property Index dropped 0.8% compared to the same month in 2023 and slipped 0.4% from March. This monthly dip suggests an annualized pace of decline of 4.7%.
“New uncertainty about the U.S. economy may not be fully reflected in pricing or deal flow for some time,” MSCI Real Assets noted. Despite this uncertainty, deal volume in both April and March remained consistent with levels from a year earlier, according to the latest edition of US Capital Trends.
Retail was the strongest performing sector in April, with prices rising 4.2% year-over-year. This marks the continuation of an upward trend that began in late 2024. Prices in the retail sector also increased 0.2% from March, marking the 11th consecutive month of growth.
Conversely, Central Business District (CBD) office properties continued to face challenges, posting a 3.8% decline year-over-year. However, this is a noted improvement from the approximately 30% annual decline reported for downtown office pricing just a year ago.
