High-End Property Sales Drive US Price Recovery

Market Recovery Led by High-End Property Sales

US commercial real estate is showing signs of recovery as high-end property sales drive prices up. CoStar’s latest repeat sale indices reveal that large, well-situated properties—especially those anchored by long-term tenants—are at the forefront of the rebound.

The value-weighted US Composite Index, tracking these high-value assets, climbed 1.7% year-over-year, maintaining a positive trend that began in mid-2025. In contrast, the equal-weighted index for lower-priced assets reported a 1.3% annual gain, highlighting a clear divide between property classes.

Stabilizing, Not Surging

According to CoStar analyst Chad Littell, the CRE market is stabilizing rather than posting broad gains. Price movements remain uneven, with growth periods followed by flatter months. Institutional buyers focus on properties that provide secure, contract-based income at below-peak prices. Meanwhile, less valuable assets continue to lag, a trend also visible in Sun Belt markets where luxury housing demand continues to outpace broader segments.

The equal-weighted investment-grade subindex saw a notable 1.5% monthly rise in February, while the general commercial subindex—typically lower-value properties—dropped by 0.3%, marking its second dip in three months.

Ongoing Pressures and Outlook

Industry headwinds persist as refinancing challenges, high interest rates, and limited rent growth slow recovery. CoStar’s report draws from over 1,000 repeat-sale pairs each month. It shows that CRE momentum remains strongest among high-end assets.

For now, high-end property prices set the pace for the US commercial real estate market. This trend signals stabilization as investors return to core, high-quality assets.