Office properties in major markets lead price gains

U.S. commercial real estate prices advanced across major property types over the past year, with office buildings posting the strongest gains despite broader market headwinds.

Value-weighted office property prices, more heavily influenced by expensive deals in large markets, rose 3.8% in the 12 months ended in December, according to the CoStar Commercial Repeat Sale Indices. That`s a stark difference from 2024, when office prices in the category posted a decline of 11.4%.

The value-weighted index also showed gains for industrial, retail and multifamily properties. That compares favorably to 2024, when only industrial and retail properties posted annual growth in the monthly report that tracks when previously sold properties trade again in a process called a repeat sale.

In 2025, large commercial property brokerages reported an increase in U.S. office leasing. Some markets, such as San Francisco, have benefited from office demand from companies that focus on artificial intelligence.