RCA Insights

US Prices Rise in April, Led by Industrial Growth

By on May 24th, 2018

U.S. commercial real estate prices rose in April despite modest price declines posted by CBD office and retail properties, the latest RCA CPPI summary report shows. Prices increased 0.6% in April from a month earlier and are up 8.2% year-over-year.

CBD office prices are now negative on an annual basis, down 0.7% from a year ago. Retail prices have remained relatively flat for some time despite bad press. They are down 0.1% from a month earlier but remain slightly elevated on an annual basis, up 0.7% from April ’17.

Industrial prices rose the fastest in the month and industrial assets continue to be an investor favorite. Prices rose 1.7% from a month ago and are up 11.1% year-over-year. Mirroring this growth is deal activity: volume for the first four months of 2018 is up almost 25% for industrial properties compared to the same period last year.

Of the major property types, only industrial, hotel, and apartment are showing volume gains for the year-to-date versus the same period last year, the current edition of US Capital Trends shows. In April, most of the major property types registered double-digit declines in activity and total deal volume for the month was at the lowest level since early 2013.

1805 US CPPI_sectors

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