- Repeat sales of high-value commercial properties rose 1.9% in April, with investment-grade deals totaling $5.3B for the month.
- Multifamily continues to lead all property types in annual price appreciation, with values rising 4% from April 2024 to April 2025.
- The trend suggests the market may have found a pricing floor, particularly in higher-quality Class A and B properties.
- Nonresidential property prices have declined in 15 of the past 20 months, dropping 5.1% year-over-year.
A Bottom In Sight?
Commercial real estate pricing may be finding its footing, thanks to renewed activity in high-dollar asset sales, reports CoStar. According to CoStar’s latest Commercial Repeat-Sale Indices (CCRSI), April saw a 1.9% increase in repeat sales of Class A and B properties over March, totaling $5.3B. Year-to-date, these investment-grade trades reached $22.2B — a 39% jump over the same period in 2024.
Top-End Rebound
Chad Littell, national director of US capital markets analytics at CoStar, said rising sales of high-quality properties could mark the start of a pricing recovery. “The number of investment-grade assets trading is increasing, putting upward pressure on values, or at least finding a floor,” he noted. After sharp pullbacks in top-tier transactions between 2022 and 2024, the segment is showing renewed investor interest.
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Multifamily Leads The Way
Multifamily remains the strongest-performing sector. The value-weighted multifamily index has risen in nine of the past 12 months, showing a 4% increase year-over-year through April. That contrasts sharply with nonresidential property values, which have fallen 5.1% over the same period.
Mixed Signals Across Segments
April marked the first month since February 2024 that both of CoStar’s composite pricing indices declined simultaneously. The value-weighted index — more influenced by large-market, high-dollar trades — dipped 1.4% month-over-month but was still up 0.4% annually. The equal-weighted index, which tracks smaller-market sales, fell 0.9% in April but posted a 1.2% annual gain.
Looking Ahead
While overall commercial property prices remain under pressure, particularly outside the multifamily segment, recent movement at the top end of the market suggests a turning point may be near. Historically, multifamily is an early mover in both downturns and recoveries — and its strength may hint at what’s ahead for the broader sector.
