U.S. commercial property prices declined in May 2025, with the RCA CPPI National All-Property Index down 1.0% year-over-year and extending a trend of mild annual decreases over the past year, MSCI Real Assets reported Thursday. The index has posted five consecutive monthly decreases, and in May prices slipped 0.2% from April, implying a faster annualized decline of 2.8%.
“In the face of mounting macroeconomic uncertainty, commercial property prices have maintained stability so far,” according to MSCI Real Assets. “The wave of tariffs announced by the U.S. administration early in 2025 has yet to materially undermine pricing, likely due to the inherently slower transaction
timelines of the market.”
Pricing performance varied among the four main property sectors. Retail fared best with a 4.0% Y-O-Y gain, although the monthly increase of 0.2% implies a weaker growth rate of 1.9%. Y-O-Y growth for industrial pricing is on the verge of turning negative for the first time since July 2023.
Apartment prices dropped 1.1% Y-O-Y in May, a more moderate pace of annual loss than was seen over
the previous two and a half years. CBD office was again the weakest sector with a 6.2% annual decline, which nonetheless represented an improvement over the nearly 30% Y-O-Y drop a year earlier.
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