U.S. CRE Pricing Starts to Gain After 18 Months of Losses Article originally posted on HERE on August 2, 2024 U.S. commercial property prices arrested their series of declines in June after a year and a half of losses, MSCI Real Assets reported Thursday. The RCA CPPI National All Property Index was unchanged from a year ago and rose 0.6% from May. All sectors posted improved annual trends in June, with the exception of apartments. Industrial was again the best-performing property type, with prices up 8% from a year ago and close to 50% above the levels at the start of the pandemic. “Investors have increasingly favored assets with strong fundamentals during the turbulent macroeconomic environment of the past four years,” according to MSCI Real Assets. “Simultaneously, other asset classes have grappled with their unique challenges, further driving interest toward the perceived safety of industrial assets.” The office sector continued to register the largest annual declines of the property sectors, although the latest declines nonetheless were an improvement over what was seen over the past 12 months. CBD office prices fell 24.7% in June from a year ago, while suburban office prices dropped 7.5%. Apartment prices fell 7.5% year-over-year in June and 0.5% from May. Although all other major property sectors have shown relative improvements to the annual rate of change over the past quarter, the apartment index has hovered around a 7.5% yearly decline. Retail property prices rose 0.7% from a year ago, marking the first month of annual growth for the index since December 2022 and a recovery from the high single-digit declines that were seen a year ago. The retail index rose 0.5% in June from May. MSCI Real Assets said that annualizing this monthly change shows an even stronger yearly climb than that posted, at 6.1%.