CRE Prices Edged Down To Close 2025, Driven By Downtown Office

The last quarter of 2025 came with price haircuts across much of the U.S. real estate landscape. Urban offices were hit particularly hard.

While MSCI`s commercial property price index last month rose 0.2% year-over-year, it fell 0.4% from November to December. And the drop from the third quarter to the fourth implies an annualized pace decrease of 3.5%. 

“Price growth has been softening in recent months,” the analysis says.

The office sector was hit the hardest, with central business district properties falling in the fourth quarter at an annualized pace of 7.9%. That metric for their suburban counterparts showed a 1.2% drop...

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RSK: CRE prices continue to fall, mainly due to the downtown office market...