RCA Insights

US Price Growth Picks Up in August, Report Shows

By on September 27th, 2018

The pace of price growth for U.S. commercial properties picked up in August, the latest RCA CPPI report shows. After five months of slowed annual growth, the US National All-Property Index rose 7.7% in August from a year ago and 1.0% from a month prior.

National price gains were driven by increases in secondary and tertiary markets. Here, price growth among all core property types except retail has outpaced growth in the 6 Major Metros over the past year. Non-Major Metro prices rose 8.3% year-over-year in August compared to 6.1% year-over-year in the 6 Major Metros.

Apartment price growth continues to outpace other types, rising 1.2% in August from a month earlier and 12.3% from a year ago. CBD office prices rose and reversed losses from the start of the year. Still, the annual pace of growth for the CBD office sector was the slowest among the property types for August.

Transaction activity surged in August, making it the strongest August in history, the latest edition of US Capital Trends shows. The report, also released this week, showed deal volume climbed 46% compared to a year earlier, propelled by multibillion-dollar entity-level deals in the industrial and retail sectors.

1809 US CPPI_NMMvs6MM_300

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 and US Capital Trends reports and conduct your own pricing analysis on the RCA website.