RCA Insights

Chart: US Monthly Volume and Pricing Trends by Sector

By on December 30th, 2019

Investors have been ramping up activity in the U.S. apartment and industrial sectors over the last five years while moving away from the retail sector.

The pivot towards the apartment sector has been longer standing, with monthly volume trends on a steady upswing since 2013, aside from some period-to-period noise. Growth in the RCA CPPI for the apartment sector has also been more steady – never dipping below 6% year-over-year increases – even as other sectors have swung rapidly from single- to double-digit growth and vice versa.

The move towards the industrial sector is more recent: the strongest increase in acquisition activity has been over the last two years. In November 2019, industrial deal volume touched $26.3 billion, thanks to outsize portfolio activity.

These charts first appeared in The Big Picture report of US Capital Trends, published December 18. The 2019 year in review edition of US Capital Trends — which includes rankings of the top U.S. brokers, buyers and sellers, and deals of 2019 — will be published January 22.

Also on RCA Insights:

US Price Growth Accelerates Into Year-End: RCA CPPI

2019 Is Almost Over. How Does It Measure Up?

Jim Costello

Jim Costello

Senior Vice President

Jim Costello has worked in the CRE space on issues of urban economics since 1990, including a 20-year stint at Torto Wheaton Research. Jim expanded the reach of the Torto Wheaton Research team developing forecasts of global market fundamentals. He also developed approaches to pair the forecast results with frameworks to answer investor questions on asset values and relative investment opportunities.

In the aftermath of the Global Financial Crisis, Jim provided advice to the Treasury Department and helped educate these professionals on commercial real estate performance. Jim is a member of the Commercial Board of Governors of the Mortgage Bankers Administration, where he helps policy makers understand the commercial real estate industry.

Jim is expanding the capabilities of the Real Capital Analytics team on issues of real estate market dynamics. Jim has a master’s degree in economics and is a member of the Counselors of Real Estate.