But given all the ups and downs of the last few years — which sections were really hot, which were not — perhaps the most interesting figures are the change between the second quarter of 2022 and the first quarter of 2024. Composite was at -1.73%. Now, from worst to best, multifamily, -5.92%; industrial, -0.98%; lodging, 1.68%; office, 2.15%; and retail, 2.97%. "The multifamily sector has been the primary driver behind the recent decrease in overall CRE prices, reflecting significant challenges in this market," Trepp said. "This quarter, multifamily property prices stayed almost flat with a slight increase of just over 0.5% quarter-over-quarter but experienced a notable year-over-year decline of more than 2%." The performance of office may seem odd, considering all the predictions of doom that have been about. Trepp says that the results aren't necessarily incompatible with market conditions. They attribute the performance to "inherent illiquidity" and owner reluctance to sell at a lower price. That puts a lid on transaction volumes and provides some insulation from falling price dynamics. Also, "these gains pale in comparison to the rate of appreciation that was anticipated pre-COVID, signaling a shift in market expectations and potential long-term changes in the valuation of office spaces." https://lnkd.in/ekR3rYJe