Among the major commercial real estate asset classes, the multifamily and industrial sectors appear to be performing the best – from a pricing perspective, at least.
That’s according to the latest value-weighted, sector-specific property price indices compiled by data firm Trepp. The value-weighted indices factor in the impact of larger transactions. This can provide a more nuanced view of CRE pricing.
Prices for multifamily properties are up about 1.8 percent quarter over quarter, and industrial assets are up 1.5 percent. Those are the largest increases among the four major sectors, whose prices are all trending higher.
However, compared to last year, pricing in the multifamily, office and industrial sectors is down. Retail prices are essentially flat.
Overall, Trepp’s value-weighted composite index ticked up roughly 1.2 percent from the prior quarter. Still, it’s down about 10.7 percent from its 2022 peaks.
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