- Top-tier commercial properties saw a 1.3% price increase in August, marking two months of gains after a prolonged slump since 2022.
- Lower-priced transactions continued to decline, with the equal-weighted index falling 0.1%, showing investor caution around smaller deals.
- Nonresidential properties led the rebound, gaining 3.5% over three months, while multifamily prices dropped for the sixth straight month.
- Repeat-sales volume rose 3.6% year-over-year to $10.7B in August, with distressed sales making up just 2.7% of transactions.
Big Deals Show Upturn Potential
After years of downward pressure, prices for high-value commercial real estate assets are showing signs of recovery. According to CoStar’s August Commercial Repeat-Sale Indices (CCRSI), the value-weighted index, which reflects larger transactions, rose 1.3% last month following a 2.7% gain over the summer.
Chad Littell, CoStar’s national director of capital markets analytics, called it a “welcomed change,” as large-scale deals return alongside signs of modest price appreciation.
Small Deals Still Under Pressure
While big-ticket transactions are gaining ground, lower-value commercial properties continue to struggle. The equal-weighted index, which captures the broader volume of smaller deals, declined 0.1% in August, its fourth drop in five months. However, the pace of decline is slowing compared to earlier in the year.
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Performance Varies by Property Type
Commercial nonresidential properties, including office and retail, saw prices rise for the third straight month, totaling a 3.5% gain. Multifamily assets continued to decline, falling 3.7% over the past six months.
Market Activity and Distress Levels
Repeat-sale volume rose nearly 28% year-over-year to $133.9B, with August alone reaching $10.7B. Distress sales stayed low, making up just 2.7% of repeat transactions—well below past downturn levels.
Why It Matters
The rise in high-value deal prices and increased transaction activity point to early signs of recovery in parts of the CRE market. With the typically strong year-end period approaching, broader stabilization could follow.
Looking Ahead
Investors remain wary of smaller deals, but momentum in large-scale properties could help shift sentiment heading into 2026.
