U.S. commercial real estate prices increased across major property types over the past year. Office properties led the recovery despite ongoing market uncertainty.
According to the CoStar Commercial Repeat Sale Indices, value-weighted office prices rose 3.8% in the 12 months ended in December. This followed an 11.4% decline in 2024.
Industrial, retail, and multifamily assets also posted gains. In contrast, only industrial and retail grew in 2024.
Office leasing activity increased in 2025. Markets like San Francisco saw stronger demand from companies tied to artificial intelligence.
Regional performance was mixed during the fourth quarter. About half of all property types recorded price gains.
In the Northeast, prices fell 2.7% year over year despite a 1.5% quarterly increase.
Multifamily rose 1.1%, while office declined 3.1%.
Retail and industrial also posted modest declines.
The South posted a 3.1% annual gain, led by office growth of 4.7%.
The Midwest rose 7.4%, driven by strong multifamily and industrial performance.
The West declined 5.8%, although retail held steady.
The data suggests that office pricing is stabilizing in major markets. This trend is especially relevant for New York and other Northeast metros as leasing activity improves.
About CORFAC International – New York
CORFAC International – New York, an extension of CORFAC International delivers over 90 years of Expertise for Commercial Real Estate in the Greater NY Metro Area. Comprised of a partnership of WCRE & Chilmark Real Estate Services, CORFAC International – New York provides practical guidance, analyzes crucial transaction details for optimal workspaces and deals, by leveraging market knowledge to drive client success. As committed advocates, we deliver measurable results, serving global clients with expert advisory and property management. We match your dedication with proven expertise.
