CoStar’s August 2026 data showed divergent movements across U.S. commercial property segments, with general commercial prices rising while investment-grade values declined. The report also projected lower deliveries of office, retail and industrial space over the following 12 months, providing new data on property pricing and construction activity.
Key Takeaways
- CoStar’s value-weighted U.S. Composite Index fell 1.3% in August
- The equal-weighted index rose 1.4% during the month
- General commercial property prices increased 1.4% in August
- Investment-grade commercial property prices declined 1.4%
- Projected office, retail and industrial deliveries were 19.5% below the previous year
CoStar Reports Diverging Commercial Property Price Measures
U.S. commercial property prices moved in different directions across CoStar’s major commercial property measures in August 2026, with the value-weighted U.S. Composite Index declining while the equal-weighted index increased.
The value-weighted U.S. Composite Index fell 1.3% from July, marking its fifth consecutive monthly decline. The index was also down 4% from the previous quarter and 1.4% from August 2025.
The equal-weighted index produced a different result. It increased 1.4% in August, recording its first monthly gain since March, and stood 2.2% above its August 2025 level.
The two measures capture different aspects of commercial property pricing. The value-weighted index gives greater weight to higher-value properties, while the equal-weighted measure gives individual transactions a more similar influence on the index.
The contrasting results mean that August did not produce a single direction for U.S. commercial property values across the measures tracked by CoStar.
A separate commercial real estate demand index covering 306 U.S. metropolitan areas provides additional measures of local demand drivers across office, industrial, retail and multifamily properties.
General Commercial Property Prices Increase in August
General commercial property prices increased 1.4% in August, according to the CoStar data. The category was also 2.8% higher than it was in August 2025.
The August increase contrasts with the performance of the investment-grade segment, which declined during the same month. The difference contributed to the split between commercial property categories reported by CoStar.
The general commercial property measure covers a broader group of commercial assets than the investment-grade category. Its August increase therefore provides a separate view of pricing activity from the value-weighted composite measure.
The annual increase also places general commercial property values above their level from the same month a year earlier.
CoStar’s data is based on commercial property transactions and is designed to track changes in property values through repeat sales. This allows the index to measure price movements among properties that have sold more than once rather than relying solely on asking prices or property listings.
The August figures therefore provide transaction-based information on commercial property values across the U.S. market.
Investment-Grade Property Values Decline During the Month
Investment-grade commercial property prices declined 1.4% in August, according to CoStar. The segment was also 1.6% below its August 2025 level.
The decline contrasts with the 1.4% monthly increase recorded by general commercial properties. It also differs from the 1.4% monthly gain in CoStar’s equal-weighted U.S. Composite Index.
Investment-grade assets represent a distinct segment of the commercial property market, making their performance relevant to the overall measurement of commercial property values.
The August figures show that changes in commercial property prices varied according to the segment being measured. A national composite therefore does not provide the same result as an index focused on a particular class of property.
The difference also appears in the annual figures. General commercial property prices were 2.8% higher than a year earlier, while investment-grade prices were 1.6% lower.
These figures describe separate measures rather than a single market-wide price change. CoStar’s data provides the individual measurements needed to identify those differences.
Commercial Property Transactions Show Mixed Activity
Transaction activity also produced mixed results in CoStar’s August data. The number of transactions recorded over the 12 months ending in August was 12.3% higher than during the comparable period in 2025.
At the same time, August repeat-sale activity and dollar volume were lower than they were a year earlier.
The distinction between transaction counts and transaction volume provides separate information about commercial property activity. A higher number of transactions over the 12-month period does not mean that August’s transaction volume increased year over year.
CoStar’s Commercial Repeat Sales Index uses repeat property transactions to track changes in commercial real estate values. The approach provides a transaction-based measure that can be used to examine price movements across commercial property segments.
The August results therefore combine several measures of market activity: the value-weighted composite declined, the equal-weighted index increased, general commercial property prices rose, investment-grade prices fell, and the 12-month transaction count was higher than the comparable prior-year period.
Each measure captures a different part of the commercial property market.
Office, Retail and Industrial Deliveries Face a Lower Pipeline
CoStar also projected 482 million square feet of office, retail and industrial space deliveries during the 12 months ending in September. The projected amount was 19.5% below the delivery level recorded during the comparable previous period.
The projected deliveries were also substantially below the quarterly delivery level recorded at the peak of the 2023 cycle. CoStar said quarterly deliveries were projected to fall 63% compared with the fourth-quarter 2023 cycle peak.
The delivery figures cover three major commercial property sectors: office, retail and industrial. They provide a measure of new space expected to enter the market rather than existing-property transactions.
The lower projected delivery volume gives a separate measure of commercial real estate activity from CoStar’s property-price indexes. Property prices track transaction values, while delivery figures track new commercial space entering the market.
The projected reduction in deliveries also provides a current measure of the construction pipeline for office, retail and industrial properties. The 482 million-square-foot projection covers the 12-month period ending in September rather than a single month’s construction activity.
Construction costs can also affect development budgets. Recent data showed higher U.S. construction costs for nonresidential projects, with nonresidential construction inputs rising 8.9% year over year in August.
CoStar’s August data therefore presents separate measurements for property values, transactions and new supply. General commercial property prices increased during August, while investment-grade values declined. At the same time, projected deliveries across office, retail and industrial properties were below the previous year’s level and well below the 2023 cycle peak.
Frequently Asked Questions
What are U.S. commercial property prices doing in 2026?
CoStar’s August 2026 data showed different results across commercial property measures. General commercial property prices increased 1.4% in August, while investment-grade prices declined 1.4%.
What happened to commercial property prices in August 2026?
The value-weighted U.S. Composite Index declined 1.3% in August, while the equal-weighted index increased 1.4%. General commercial property prices also rose 1.4% during the month.
How did investment-grade property prices change in August?
Investment-grade commercial property prices declined 1.4% in August and were 1.6% below their August 2025 level, according to CoStar.
How are commercial property deliveries changing in 2026?
CoStar projected 482 million square feet of office, retail and industrial deliveries for the 12 months ending in September. The projection was 19.5% below the previous year’s delivery level.
What does the CoStar Commercial Repeat Sales Index measure?
The CoStar Commercial Repeat Sales Index tracks changes in commercial property values using repeat property transactions. It provides transaction-based measurements of commercial real estate price movements.
