RCA Insights

US Real Estate Price Growth Gathers Pace in August

By on September 23rd, 2021

All four major U.S. commercial real estate types posted double-digit annual price growth in August, propelling the US National All-Property Index to a 13.5% year-over-year increase, the latest RCA CPPI: US report shows. The index rose 1.5% from July.

Apartment prices posted a 14.7% gain, the fastest annual growth rate seen since the housing boom before the Global Financial Crisis. Prices for the sector increased 1.6% from July.

Industrial prices climbed 13.6% year-over-year and retail prices jumped 12.1%. While the retail sector in general has suffered during the Covid era, some segments such as grocery-anchored centers have remained buoyant.

The office sector index accelerated to an 11.2% year-over-year growth rate in August, again fueled by suburban office prices which increased 14.8%. CBD office prices continue to move in the opposite direction, posting a 3.7% annual decline in August.

Deal activity in the U.S. commercial real estate market rose at a triple-digit rate in August as the market continued its bounceback from lows of 2020, as shown in the latest edition of US Capital Trends.

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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 in the Trends silo of the RCA website.