After 17 straight months of increases, the headline rate for US commercial real estate property price growth finally slowed between February and March 2022, according to Real Capital Analytics. The company's CPPI national all-property index dropped 0.4% was the first month-over-month decrease since June 2020.
However, the index was still up 17.4% over the previous year. A one-month change doesn't indicate an ongoing trend.
"This pace of growth would be fantastic in any normal period, but it is no longer climbing at the average 300 bps of additional growth each quarter seen since Q4 '20," the report explained. "Some element of this deceleration in price growth is a function of the easing of fear that dominated with Covid-19. It is not clear how much of the deceleration is due to the economic challenges arising in March of this year."
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