In a repeat sales property price analysis of the third quarter of 2024, Trepp found continued downward pressure on CRE prices. That happened to both equally weighted (balanced representation across property types) and value-weighted (greater emphasis on larger dollar transactions) indices. The analysis showed broad declines quarter-over-quarter and year-over-year.
The equally weighted index has declined 2.41% from its peak with a quarter-over-quarter decrease of 1.07%. The value-weighted index has dropped 12.57% from its peak, including a quarter-over-quarter decrease of 1.73%. This should be taken with some patience as the 50-basis-point cut in September and the subsequent additional pair of 25-basis-point cuts still haven’t had time to result in reduced loan rates, which could have an effect on pricing data.
The difference between the equally weighted and value-weighted indexes by property type is stark. Starting with the equally weighted, the composite change from the peak second quarter of 2022 to the third quarter of 2024 was -2.41%, with a year-over-year change of -2.20% and a quarter-to-quarter change of -1.07%.
Recommended For You
For multifamily, the peak to 2024 Q3 change was -7.19%, with year-over-year of -4.22% and quarter-to-quarter change of -1.00%. For office, it was -2.25%, -3.41%, and -0.94%. Retail saw -1.64%, -0.96%, and -1.46%. Industrial was +1.32%, -0.68%, and -1.03%. And for lodging, -7.11%, -2.10%, and +1.32%.
Then there are the changes in value-weighted. The composite was -12.57% from peak to third quarter, -5.91% year over year, and -1.73% quarter over quarter. Multifamily was -16.96%, -8.83% year over year, and -2.53% quarter to quarter. Office: -22.53%, -10.27%, and -3.19%. Retail was -6.28%, -3.64%, and -0.56%. Industrial, which was least affected, was -3.09%, -2.79%, and -1.35%.
Multifamily saw greater declines in larger and more expensive sales value. The declining prices show “increasing price security” for larger multifamily properties, as many were developed while interest rates were near zero and developers were chasing demographic shifts.
In office, there was a big difference between the equally weighted and value-weighted, with the EW showing “relative stability” in average property values and VW showing the 10.27% year-over-year decline, with that 22.53% decline since the peak. That shows “significant discounts” with higher-value properties showing higher discounts.
Retail declines were relatively modest compared to the above categories. Industrial showed the highest resilience as an investment class because of demand from logistics, e-commerce, and data centers. Lodging is affected by consumer confidence and travel behaviors.
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
