U.S. commercial property prices edged higher in July as the RCA CPPI US National All-Property Index posted its slowest annual gain since January 2025, MSCI Real Assets reported. The index increased 0.2% from a year earlier and rose 0.1% from June, translating to an annualized growth pace of 1.2%.
“Borrowing costs for commercial real estate show no sign of easing, as the Federal Reserve held its policy rate steady in a divided vote and its chair ruled out any softening of the inflation target,” reported MSCI. “Investors now see scant chance of a near-term rate cut, keeping financing conditions tight across the market.”
By property type, CBD office was the best performer, with prices up 9.9% from a year ago and 1.6% from June. Suburban office pricing also increased, up 4.0% annually and 0.4% from the previous month. The other major property sectors experienced annual declines, ranging from 0.9% for retail to 4.4% for apartments. July marked the ninth consecutive month of annual declines for apartment pricing.
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