PRESS RELEASE

CCRSI RELEASE – February 2025
(With data through January 2025)

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Complete CCRSI data set accompanying this release 

This month's CoStar Commercial Repeat Sale Indices (CCRSI) provides the market's first look at commercial real estate pricing trends through January 2025. Based on 1,267 repeat sale pairs in January 2025 and 319,385 repeat sales since 1996, the CCRSI offers the broadest measure of commercial real estate repeat sales activity.

CCRSI National Results Highlights

• U.S. COMPOSITE PRICE INDICES SLUMPED IN JANUARY 2025. The value-weighted U.S. Composite Index, more heavily influenced by high-value trades common in core markets, was flat over the prior month at 248. However, the index posted its first year-over-year gain, 0.6%, since October 2022. Furthermore, in January 2025, despite seeing 26 consecutive quarters of year-over-year price declines, the value-weighted index was 10% above levels from February 2020, which marked the onset of the global pandemic.
• Meanwhile, the equal-weighted U.S. composite index, which reflects the more numerous but lower-priced property sales typical of secondary and tertiary markets, dipped 0.4% over the prior month to 306. The index also fell 1.4% in the 12 months ending in January 2025. But, comparing January 2025 to February 2020, the equal-weighted index stood 31% above pre-pandemic levels.

• EQUAL-WEIGHTED PRICE INDICES WERE MIXED IN JANUARY 2025. The investment grade and general commercial sub-indices fared better in January 2025 than in the prior month. December 2024 marked the largest month-over-month decline for the investment grade sub-index since January 1998 and the most severe decrease in the general commercial sub-index since the Great Recession.
• The investment grade sub-index, more heavily influenced by higher-value assets, rose 1.4% in January 2025. The sub-index fell 5.4% in the 12 months ending January 2025.
• The general commercial sub-index, more heavily influenced by smaller, lower-priced assets, lost 0.9% of value in January 2025, marking the second consecutive month of declines. This sub-index sank 0.3% over the 12 months ending January 2025.

•  AVERAGE DAYS ON MARKET CONTINUE TO FALL. The average time on the market of for-sale properties dropped 5.3% to 171.7 days in the 12 months ending in January 2025. After three months of no change, the sale-price-to-asking-price ratio ticked 10 basis points higher in January 2025 to 93.1%, the tightest this ratio has been since November 2023.

• TRANSACTION VOLUME ROSE IN JANUARY 2025 COMPARED TO THE FIRST MONTH OF 2024. The 1,267 repeat-sale transactions in January 2025 were higher than the 1,201 and 1,155 repeat sales in 2023 and 2024, respectively. Additionally, January 2025 bested the trade volumes in 2018 and 2019, where 1,193 and 1,255 repeat sales occurred, respectively. January 2025 also witnessed a meaningful increase in year-over-year transaction volume. Compared to the $6.7 billion in repeat sales in January 2024, the first month of 2025 posted $9.1 billion, a 34.6% increase in repeat sales volume.
• Composite pair volume of $119.6 billion during the 12 months ending in January 2025 was 20.3% higher than the 12 months ending in January 2024. The uptick in sales volume was more pronounced in the investment grade segment, which jumped 31.7% over the 12 months that ended in January 2025 compared to the same period ending in January 2024. The investment grade segment accounted for 61.1% of the overall transaction volume during the last 12 months. The general commercial segment, which accounted for 38.9% of the 12-month transaction volume, rose 6.3% over the 12 months ending in January 2024.

• DISTRESSED REPEAT SALES FELL IN JANUARY 2025. In a declining trend, 29 of the 1,267 repeat-sale trades in January 2025, or about 2.3%, were distressed sales, a decrease of 80 basis points from January 2024. General commercial accounted for 18 distressed trades in January 2025, or 1.7% of general commercial repeat sales. Eleven distressed investment-grade sales were recorded in January 2025, accounting for 5.3% of investment-grade repeat sales.

About The CoStar Commercial Repeat-Sale Indices

The CoStar Commercial Repeat-Sale Indices (CCRSI) are the most comprehensive and accurate measures of commercial real estate prices in the United States. In addition to the national Composite Index (presented in both equal-weighted and value-weighted versions), national Investment-Grade Index, and national General Commercial Index, which are reported monthly, 30 sub-indices in the CoStar index family are reported quarterly. The sub-indices include breakdowns by property sector (office, industrial, retail, multifamily, hospitality, and land), by region of the country (Northeast, South, Midwest, and West), by transaction size and quality (general commercial, investment-grade), and by market size (composite index of the prime market areas in the country). The CoStar indices are constructed using a repeat sales methodology, widely considered the most accurate measure of price changes for real estate. This methodology measures the movement in the prices of commercial properties by collecting data on actual transaction prices. When a property is sold more than once, a sales pair is created. The prices from the first and second sales are then used to calculate price movement for the property. The aggregated price changes from all the sales pairs are used to create a price index. Historical price indices are revised as new data is recorded.

MEDIA CONTACT:

Matthew Blocher, Vice President, CoStar Group Corporate Marketing & Communications (mblocher@costar.com).

For more information about the CCRSI Indices, including the full accompanying data set and research methodology, legal notices, and disclaimer, please visit https://costargroup.com/costar-news/ccrsi/.

ABOUT COSTAR GROUP, INC.

CoStar Group (NASDAQ: CSGP) is the global leader in commercial real estate information, analytics, and online marketplaces. Founded in 1986, CoStar Group is dedicated to digitizing the world’s real estate, empowering all people to discover properties, insights, and connections that improve their businesses and lives.

CoStar Group’s major brands include CoStar, a leading global provider of commercial real estate data, analytics, and news; LoopNet, the most trafficked commercial real estate marketplace; Apartments.com, the leading platform for apartment rentals; and Homes.com, the fastest-growing residential real estate marketplace. CoStar Group’s industry-leading brands include STR, a global leader in hospitality data and benchmarking, Ten-X, an online platform for commercial real estate auctions and negotiated bids and OnTheMarket, a leading residential property portal in the United Kingdom.

CoStar Group’s websites attracted over 134 million average monthly unique visitors in the fourth quarter of 2024, serving clients around the world. Headquartered in Arlington, Virginia, CoStar Group is committed to transforming the real estate industry through innovative technology and comprehensive market intelligence. From time to time, we plan to utilize our corporate website as a channel of distribution for material company information. For more information, visit www.CoStarGroup.com.