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Hotel prices fall as suburban offices lead commercial CRE gains
In June, June transaction volume rose to $136.6B, up 14% year over year, while overall prices inched higher by about 90 basis points.
Commercial real estate prices became more split by property type in June, ending a period when sectors tended to move together, according to MSCI data cited by Bisnow.
Hotel prices fell 9.3% year over year in June, apartment values declined 1.7%, and industrial property slipped 0.4% for its first negative reading of the cycle, while suburban office values gained 3% from the prior year to become the sector’s top performer.
MSCI analysts said property types are increasingly priced on their own fundamentals rather than as a single asset class driven by broader financial moves.
Deal activity stayed firm as transaction volume totaled $136.6B in June, up 14% from a year earlier, with overall prices drifting upward by about 90 basis points, supported by a rise in portfolio sales and entity-level activity, Bisnow reported. MSCI Chief Economist Jim Costello said the wider data suggest deal momentum may weaken in the second half versus last year, though he characterized the market as not collapsing.