Commercial property prices were little changed in the first quarter of 2021, according to the CoStar commercial repeat sales index. The flattening out of overall index, however, masks divergent trends among different sectors of the overall commercial real estate market.
Prices of office and retail properties each edged lower in the first quarter, by -0.8% and -0.3%, respectively. The declines in office prices in the first few months of 2021 follow earlier weakness during the pandemic, and the office price index is down 3.9% from the first quarter of 2020.
Other sectors that have enjoyed robust demand during the pandemic, in contrast, saw property prices rise in the first quarter. The multifamily price index rose 0.8% over the prior quarter, and has increased 7.8% over the past four quarters. The industrial property price index was up 1.3% over the prior quarter, and has risen 9.0% over the past four quarters.