By Willem Vlaming on May 23rd, 2019
Growth in U.S. commercial real estate prices picked up to an annual rate of 6.7% in April, led by industrial property prices, the latest RCA CPPI summary report shows. The US National All-Property index rose 0.8% in April from March.
Industrial property prices rose 10.3% year-over-year, a rate of price growth not observed for this sector since 2015. Apartment sector price growth continued to wane. While the 7.1% year-over-year increase was the third largest among the property types in April, this sector had been posting returns greater than 10% for most of the last eight years.
Price growth strengthened even as total U.S. deal volume has weakened so far this year. In the first four months of 2019 U.S. transaction activity dropped 11% versus the same period in 2018, as reported in the latest edition of US Capital Trends, also released this week.
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