The apartment, industrial, and office sectors reported growth despite the cooling market
Price growth for US commercial properties have remained close to the record-highs recently achieved, supported by price gains in the industrial and apartment sectors this May, MSCI reported.
The RCA commercial property price indices (CPPI) National All-Property Index climbed 18.6% from May last year, dipping slightly from the highest annual growth rate (19.3%) recorded in January. Industrial prices rose 1.8% from April 2022 and 28.6% from May 2021 – another record annual rate – even as industrial deal volume retreated for a second consecutive month.
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The annual rate of growth for apartment prices has also hit an all-time high, with May’s 23.3% pace matching April’s record rate. The index for retail properties climbed 18.8% from the previous year. While still a double-digit growth rate, MSCI noted that the pace has eased for three consecutive months.
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The office sector index grew 12.2% annually, primarily driven by a 13.4% increase in prices of offices in CBDs – the fastest rate of growth for CBD offices since 2014. Suburban office prices increased 10.5% from a year prior, while growth in the index for suburban offices has remained unchanged or decelerated for eight months in a row.
