US Property Prices Fell in October from September

Prices of U.S. commercial property fell in October from September, though they still increased compared to October of 2021. The RCA CPPI National All-Property Index dropped 0.4% on a monthly basis — which, when annualized, would be a decline of 4.5%. The posted annual change was a 7.3% increase.

Most property-type indexes showed monthly declines, and all showed slowing annual growth rates in October. Pricing of commercial property has come under pressure amid a spike in debt costs and a slowdown in deal activity in 2022.

Most sectors posted monthly drops

Prices of apartment buildings declined 0.6% from September and rose 11.3% from a year prior. The monthly decline, when annualized, would be a drop of 7.0%. Retail prices fell 0.3% from September, and the annual rate of growth slowed to 8.2%. The industrial-sector index stood out with a 0.7% monthly gain and a 16.9% annual growth rate.

The index for suburban offices rose just 0.1% from a month earlier and 5.6% from a year earlier. The index for offices in central business districts again posted a monthly decline, falling 0.3%. The index rose 1.9% from a year ago, the smallest annual gain across the property types.