Commercial property prices fell slightly in April, though the all-property index has increased by more than 3% over the last year.

April’s 0.1% drop in prices was the first decline of 2026 and followed two straight months of slight increases, according to Green Street’s Commercial Property Price Index. Despite the April decrease, overall commercial property values have grown 3.1% over the last 12 months.

Commercial real estate buyers have been disciplined this year, according to Peter Rothemund, Green Street co-head of strategic research.

“Rent growth in many sectors is uninspiring, and investors are facing a 10-year Treasury in the mid-4’s,” Rothemund said in a statement. “That’s not much to get excited about.”

Life sciences was the only primary property type to see any movement in April. That sector fell 0.7% last month, while all other asset classes were flat. Still, life sciences is up 5% over the last year.

That’s the third-best performance over the past 12 months, behind data centers and strip retail. Pricing for each of those sectors is up 6% over the last year.

Prices for all asset classes fell to 15.5% below their 2022 peak, with the office sector suffering the largest decline. Office prices are down 35% since the peak, and self-storage prices have fallen 22%.

Prices have been kept in check by the 10-year Treasury yield, which is used to determine borrowing costs for commercial real estate loans.

The Iran conflict has pushed Treasury yields up after they had remained around 4% for 2.5 years. The 10-year Treasury yield fell below 4% at the end of February but started climbing after the conflict began. It peaked at 4.4% on March 27, the highest rate since July.

The 10-year Treasury came close to matching that peak over the last week and was at 4.3% as of midday Wednesday.

Rothemund said last month that commercial real estate prices likely wouldn’t rise much higher due to the Iran conflict and the hold on interest rate cuts.

On April 29, the Federal Open Market Committee kept its benchmark interest rate unchanged for its third consecutive meeting.

Although the Federal Reserve has cut interest rates over the last year, its wait-and-see approach to start 2026 has been driven by immigration raids and changing tariff policies that have disrupted the U.S. economy and increased inflation. And the trend has been worsened by spikes in oil prices since the Iran conflict began.

Federal Reserve Chair Jerome Powell said during the FOMC’s March press conference that it was too soon to know how the conflict would affect the U.S. economy.