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Commercial property prices tick up in July, led by offices

The RCA CPPI US National All-Property Index rose 0.1% from June, while CBD office prices gained 9.9% year over year.

Reported · Written up by our desk · Commercial

U.S. commercial property prices edged higher in July, with the RCA CPPI US National All-Property Index posting its slowest annual gain since January 2025, MSCI Real Assets reported via ConnectCRE.

The index increased 0.2% year over year and rose 0.1% from June, implying an annualized growth pace of 1.2%. MSCI noted that borrowing costs for commercial real estate showed no sign of easing after the Federal Reserve held its policy rate steady, with its chair ruling out any softening of the inflation target.

MSCI also said investors now see scant chance of a near term rate cut, keeping financing conditions tight. By property type, CBD office was the strongest performer, with prices up 9.9% from a year ago and up 1.6% from June.

Suburban office prices also increased, rising 4.0% annually and 0.4% from the previous month. Other major sectors declined year over year, ranging from a 0.9% drop for retail to a 4.4% decline for apartments, marking the ninth consecutive month of annual declines for apartment pricing.

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