Commercial Property Prices Increase in March, CoStar Reports

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Commercial property prices increased in March, according to CoStar, Arlington, Va.

CoStar’s Commercial Repeat Sale Indices examined 1,455 repeat-sale pairs in March to measure commercial real estate price trends.

The firm’s value-weighted U.S. Composite Index, which is more heavily influenced by high-value trades common in core markets, increased 0.2% over the prior month to 249 in March, the 10th consecutive month of gains. Year-over-year values climbed 3.8%.

“Prices in this cohort continue to claw back the declines seen a few years ago, now sitting at 15.4% below the July 2022 all-time high,” the report said.

The equal-weighted U.S. Composite Index, which reflects the more numerous but lower-priced property sales typically seen in smaller markets, rose 0.9% to 320 in March. This index increased 1.3% during the 12 months ending in March, posting the second consecutive month of fresh all-time highs.

“Despite seeing equal-weighted prices fluctuate between gains and losses over the last two years, the year-over-year price trends have been positive dating back to 2012 with the single exception being a 0.1% decline in June 2023,” CoStar noted in the report.