U.S. commercial property prices are on a hot streak in some categories not seen since 2022. According to CoStar, multiple positive trends of back-to-back monthly growth could bode well for markets heading into next year.
Sale prices rose 1.3% over October, the fourth consecutive monthly increase. The last string of growth for four months in a row occurred from April to July 2022.
Repeat-sales volume of $109 billion during the 12 months ending in November was 7.4% higher than a year earlier, especially in the investment-grade segment, which grew 13.2% on an annual basis.
The preference for short-term financing is a sign of confidence that borrowing rates will come down further and drive price increases.
