CRE Prices Show Strongest Annual Growth Since 2022 Article originally posted on Globe St. on September 26, 2025 U.S. commercial property prices have sustained upward momentum in August, notching broad gains across major property sectors and marking their strongest annual performance since late 2022, according to MSCI’s RCA CPPI report. The National All-Property Index advanced 2.4 percent year-over-year and 0.9 percent from July, with the monthly pace equating to an annualized 11.1 percent increase. Retail assets remained at the forefront of price growth, posting a 5.3 percent increase from August 2024 and recording gains for the fifteenth consecutive month. The report noted that, despite a moderation in monthly growth compared to late last year, August’s annualized rate is more than double the increase recorded for the same period a year earlier. Industrial property prices climbed to new highs, registering a five percent annual gain and rising 0.8 percent on the month. After several quarters of cooling, industrial values have returned to a steady upward path since April, with the August increase representing the most robust monthly performance since December 2024. When annualized, the latest monthly gain points to a potential 10.1 percent uptick over the next year. The apartment sector delivered its most notable annual growth since late 2022, with prices edging up 0.2 percent year-over-year, though they remained unchanged from July. MSCI attributed this stabilization in part to the recent Federal Reserve rate cut and anticipated further monetary easing, factors likely to bolster apartment valuations if macro conditions remain favorable. Office assets saw muted improvement, with central business district office prices rising 0.7 percent from a year ago and 0.6 percent from July. Suburban office properties experienced a smaller advance, up 0.3 percent year-over-year and month-over-month. The report highlighted persistent challenges for CBD office values, which remain substantially below 2022 levels after multi-year declines, while suburban offices have fared slightly better over the same period. Geographically, secondary and tertiary markets have outperformed primary metros over the past twelve months. The Non-Major Metro index rose 3.6 percent annually, while the Six Major Metros—Boston, Chicago, Los Angeles, New York, San Francisco and Washington, D.C.—registered a 1.5 percent annual decline. Despite the lag, recent data signals improvement in major metros, as monthly growth has turned positive since April, with August’s 0.4 percent increase annualizing to a 5.3 percent gain. Over the past decade, industrial and apartment assets led major gains, with prices up 108 percent and 65.1 percent, respectively, over 10 years. Retail assets posted steadier returns, advancing 18.9 percent in the same period, while offices—especially CBD properties—continued to underperform, remaining well below their peaks reached before the pandemic.