Commercial Property Prices Rise in October

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Commercial property prices and sales volume both increased in October, according to CoStar Group, Arlington, Va.

The research firm’s CoStar Commercial Repeat Sale Indexes examined 1,640 repeat-sale pairs in October. It found that its value-weighted index–which is more heavily influenced by high-value trades common in core markets–rose 0.5% during the month to 240. Year-over-year value losses slid compared to September, falling 1.9% in the 12 months ending in October 2025. Compared to the record high seen in July 2022, the value-weighted index was lower by 19%.

Meanwhile, the firm’s equal-weighted index, which reflects the more numerous but lower-priced property sales typical of secondary and tertiary markets, climbed 0.9% higher in October to 313. The index rose 0.2% in the 12 months ending in October 2025 and was 0.9% below the high seen in March 2025.

CoStar noted that October marked the third positive month-over-month gain out of the last four months for the equal-weighted index and the fourth positive month-over-month gain out of the last five months for the value-weighted index.

The number of repeat sales rose slightly compared to the prior month but jumped by 70 sales compared to October 2024. With 1,640 repeat sales, the total consideration in October 2025 equaled $13.5 billion, a 16.3% increase over the prior year. Investment-grade transaction volume rose 10.9% in October compared to reach $8.1 billion, equating to an 11.1% increase compared to October 2024. The general commercial segment grew 8.6% above the prior month to $5.4 billion, rendering a 25.1% increase compared to October 2024.

The report said distressed repeat sales dropped in October. A total of 33 repeat sales out of October’s 1,640 trades, or about 2%, were distressed sales.

The average time on market also fell. The average time on the market of for-sale properties fell by 0.9% to 173 days in the 12 months ending in October compared to the 12 months ending in October 2024, as the sale price-to-asking-price ratio dipped to 92.1%. At the same time, the share of properties withdrawn from the market by discouraged sellers inched higher to 28% in October 2025.