RCA Insights

US Annual Price Growth Rises to 6.7% in August

By on September 26th, 2019

Annual price growth for U.S. commercial properties increased in August, even as deal volume slid for a second consecutive month, the latest RCA CPPI summary report shows. The U.S. National All-Property Index grew 6.7% from a year ago and 0.8% from July.

Prices have continued to increase in part because of a well-functioning debt market. The ability to refinance properties rather than sell them has kept prices sticky, as noted in the current edition of US Capital Trends, also released this week. Investment volume dropped 54% in August compared to a year prior as single assets transactions fell and entity deals were absent.

1909 US CPPI Insights_1

The industrial sector continues to buttress the headline rate of annual price growth, climbing 12.5% over the past year. Monthly price gains for the sector eased to a 0.4% pace, however. After the industrial index, apartment properties posted the second strongest annual gain in August, rising 7.1%.

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 customer you can access RCA CPPI reports and run your own pricing analysis on the client-only RCA website.

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