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San Francisco was among the strongest metro areas for commercial property pricing growth in September, according to MSCI Real Assets

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.  

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About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 16-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 7-10 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

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