By Jim Costello on August 19th, 2019
When deal volume is climbing in a market, one might expect to see stronger growth in property prices. This relationship did not hold into Q2’19 in the U.S., however, with no uniform trend across property sectors or geographies.
Deal volume in the CBD office sector, for instance, grew at a 23% YOY pace in the 6 Major Metros. With that growth, the RCA CPPI for CBD offices in these areas was up 6.7% YOY. For CBD offices in the Non-Major Metros, however, volume was up only 13% YOY but prices were up 7.5% YOY.
Price growth is at record highs in the CBD office markets of the major metros so it is hard to push them further, but a number of big deals did close and boost volume in the quarter.
This article is an excerpt from the Q2 2019 edition of US Capital Trends. If you are a Real Capital Analytics client, log into the RCA website to download The Big Picture report and reports for the five major property types. The next edition of US Capital Trends will be published August 21.
To learn more about RCA’s data and publications, contact us.