CRE Prices Drop Across All Sectors in April

CRE prices fell across all major sectors in April for the first time since 2010, highlighting market weakness and shifting investor sentiment.

May 28, 2025

Nina Dale

April marked the first month since 2010 where every major CRE sector saw both monthly and annual price declines.
MSCI’s RCA CPPI showed an overall 1.1% monthly decline in prices, with a 9.4% annual drop.
Multifamily and office properties posted the sharpest year-over-year losses, at 12.1% and 6.9% respectively.
The steepest annual retail decline since 2010 reflects the sector’s volatility after a strong 2024.

Key Takeaways

Widespread Decline

CRE prices for all major US commercial property types fell in April, according to MSCI’s RCA Commercial Property Price Index. It’s the first time this has happened since 2010, per GlobeSt. The drop ends five months of relative price stability.

Breaking Down the Numbers

The overall CRE price index dropped 1.1% from March and was down 9.4% compared to April last year. Industrial prices fell 0.5% month-over-month and 0.8% from the previous year. Multifamily prices had the biggest decline—down 1.5% monthly and 12.1% annually.

Retail CRE prices dropped 6% year-over-year. That’s a sharp reversal from April 2024, when they rose over 18%. Office prices fell 6.9% compared to the same time last year, continuing their long downward trend.

What It Means

Analysts say it’s important to look at how fast prices are changing—not just whether they go up or down. CoStar’s Chad Littell notes that when the rate of price change slows, it may signal a shift. For example, the monthly decline for multifamily slowed from 2% to 1.5%.

Caution Still Needed

Some see this slowdown as a sign the market could be nearing a bottom. But experts warn that one month of smaller declines doesn’t mean the trend will continue. The current slide is similar to what happened during the 2008 recession, though prices are falling from a higher peak this time.

Why It Matters

Falling values across the board reflect ongoing market stress. High interest rates, weaker demand, and cautious lenders all play a role. Investors and developers may need to rethink short-term plans—especially in struggling sectors like office and multifamily.

Looking Ahead

The next few months will be key. If May brings more broad price drops, it may confirm that the bottom hasn’t arrived. Until there’s clearer momentum, many are likely to stay on the sidelines.