- The Green Street Commercial Property Price Index (CPPI) rose 4.1% over the past 12 months, including a 1.6% gain in May.
- Office values remain significantly impaired (~34% below peak).
- Retail pricing has largely recovered, with malls and strip centers near prior highs.
- Industrial values have pulled back but remain relatively resilient (~11% below peak).
- Multifamily pricing remains under pressure (~19% below peak) amid elevated supply.
Commercial property pricing has improved modestly in recent months but remains approximately 14% below the 2022 peak, with performance continuing to vary widely across sectors. Greater capital markets liquidity and increased transaction activity have supported values, though the recovery remains uneven and sensitive to both interest rate expectations and sector-specific fundamentals.
Sector dispersion continues to define the current cycle. Retail has been the clearest outperformer, benefiting from limited new supply and stable demand, while industrial fundamentals remain healthy despite some normalization in values. In contrast, office pricing continues to reset, reflecting weaker demand and ongoing uncertainty around long-term space needs.
Steig Seaward
Retail leads the recovery, while office remains roughly 34% below prior highs.
Multifamily values appear to be stabilizing but have yet to show meaningful upward momentum. Elevated supply is still weighing on fundamentals in many markets, limiting near-term pricing upside even as longer-term demand drivers remain intact.
