Index of commercial property prices in the U.S. 2014-2023, per quarter
Commercial property prices in the U.S. increased plateaued in 2023 after a period of rapid growth between 2014 and 2021. In the third quarter of 2023, the commercial property price index equaled 207.61 index points, reflecting a double increase in prices since 2010, which was the baseline year for the index.
How have prices of different property types developed over the past years?
After more than a decade of uninterrupted growth, prices for office real estate started to decline in 2022, reflecting a decline in occupier demand and a tougher lending environment. Industrial real estate, which has grown rapidly over the past few years, also experienced a correction in late 2022. Retail real estate displayed most resilience amid the difficult economic environment, with the equal weighed repeat sales index remaining stable.
How much is invested in new commercial properties?
The value of commercial construction has been on the rise since 2010 in the United States. This trend mirrors the recovery seen across all economic sectors after the 2007-2009 recession. However, the investment in commercial property varies by type, with private office space, warehouses, and retails reading the pack.
