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Office property prices rise as industrial and apartment momentum cools
Office prices increased 2.2% year over year, with suburban offices up 3.0% and CBD prices up 1.2%, even as CBD values remain about 50% below their March 2022 peak.
Commercial real estate pricing is showing a divergence across sectors, with office property prices posting year over year gains while industrial and multifamily continue to lag, according to ConnectCRE citing MSCI’s Q2 2026 Real Capital Analytics Commercial Property Price Index. The office index increased 2.2% year over year. Suburban office properties drove the improvement, rising 3%, while central business district office prices climbed 1.2%. Despite the positive momentum, the report noted that CBD office values are still roughly 50% below their March 2022 peak, compared with suburban office properties that are about 15% below their July 2022 high.
MSCI data also pointed to cooling conditions in other commercial segments. Industrial prices declined 0.4% year over year, a reversal from industrial’s 7.5% annual growth rate in June 2024. However, the pace improved from a 0.7% decline in Q4 2025 to a 0.1% increase in Q2 2026.
Apartments continued to face pressure from slowing rent growth and supply overhang in some markets. The apartment index declined 1.7% year over year in June, marking its 10th consecutive month of annual price declines, and fell 1.2% quarter over quarter, equivalent to an annualized decline of 4.8%. Retail prices also slipped 0.1% from a year earlier, extending a streak of annual declines.