RCA Insights

US Prices Grow 7.1% in 2017, RCA CPPI Report Shows

By on January 25th, 2018

U.S. commercial real estate prices rounded out 2017 with strong annual growth in spite of deal volume declines, the latest RCA CPPI summary report shows. The US National All-Property Index climbed 7.1% in December from a year earlier and prices now sit more than 23% above their peak before the Global Financial Crisis a decade ago.

Price growth for 2017 was propelled by gains in the apartment and industrial sectors. Apartment prices rose 10.6% year-over-year, driven primarily by gains in secondary and tertiary markets, and industrial prices grew 6.1%.

 

1801 US CPPI

Industrial assets were the single property type that logged deal volume growth in 2017 – up 20% from 2016. Coupled with the strongest price growth among commercial types, industrial was an investor favorite for the year. The expansion of the industrial sector – which overtook retail sector activity in 2017 – is explored in the new edition of US Capital Trends, also released this week.

Office and retail prices lagged other types in 2017. Office prices rose 3.0% year-over-year and retail prices edged 1.1% higher. In 2016, by contrast, office prices had grown the most among commercial types. Retail growth remains in last place, consistent with the year prior.

To learn more about the RCA CPPI (Commercial Property Price Indices) and to sign up for reports visit rcanalytics.comIf you are an RCA client you can access RCA CPPI reports and conduct your own pricing analysis on the RCA website.