Trepp Q2 index shows CRE pricing flat as large assets lag small ones

Commercial real estate pricing was roughly flat in the second quarter of 2026, but the two Trepp indices diverged by asset size, according to Trepp's Property Price Index. Trepp attributed the quarter's transaction activity in part to movements in longer-term interest rates and to AI-driven shifts in economic activity.

The equal-weighted TPPI composite moved 0.12% lower in the quarter and stands 4.96% above its June 2022 level.

The value-weighted composite declined 0.70% in the quarter, was down 2.03% over the year and remained 9.89% below its June 2022 level.

Both indices are built from repeat sales of the same properties, and Trepp added 9,508 new sale pairs in the quarter. The equal-weighted version gives each property comparable influence; the value-weighted version lets large transactions drive the result. Trepp reads the persistent gap between the two as a sign that larger, more institutional-grade assets are more likely to have seen price declines, while the equal-weighted figure points to firmer pricing across many smaller and mid-sized properties.

Trepp flagged that interest rate increases since June 2026 create additional challenges for transaction prices and volume. Those increases fall after the April-to-June quarter the Q2 index covers, so the flat print likely does not capture them.

Multifamily prices were essentially flat in the quarter, Trepp said. That lines up with Daily Network reporting in August, citing Trepp's Q2 review, that six of ten community banks were running off multifamily loans.

Trepp also said it expects to incorporate more transactions into the index as its property dataset grows through acquisitions and partnerships, which would extend the measure across more geographies in future updates.