Annual Price Growth for Commercial Properties Declines in September
The pace of annual growth in U.S. commercial property prices slowed in September to the weakest rate seen since early 2021, according to MSCI Real Assets’ Real Capital Analytics. The RCA CPPI National All-Property Index rose 11.1% from a year ago and was unchanged from August.
“Growth in the prices of U.S. commercial properties has decelerated in recent months and while annual growth is still positive across the property types, shorter-term movements highlight that momentum has been pushing towards declines,” RCA reported. The challenges of rising costs for deal financing and lower transaction volume—down 21% year-over-year in the third quarter—have been key factors.
Annual price growth for CBD offices eased to a 4.2% annual rate in September and compared to August, prices edged down 0.1%. Annual price growth for the industrial, apartment and retail sectors also slowed sharply in September but remained in the double digits.
- ◦Sale/Acquisition