RCA Insights

US Prices Grow 1.1% in August, RCA CPPI Report Shows

By on September 28th, 2017

U.S. commercial real estate prices rose in August, posting the third consecutive month of growth above 1%, the latest RCA CPPI report shows. The US National All-Property Index rose 1.1% from a month earlier and 7.3% from a year ago.

Each property type index rose month-over-month in August. Suburban office grew the most at 1.6%. Over the past year, suburban office prices have been on an upswing while office prices in central business districts (CBDs) have finally begun to cool. Suburban office climbed 9.0% year-over-year in August, while CBD office grew 3.9%.

The outperformance of suburban office assets is also evident in recent volume trends, as noted in the latest edition of US Capital Trends. Suburban office deal volume climbed 10% year-over-year in August, while CBD activity declined 52%, logging the fourth consecutive month of double-digit declines. Total deal volume across all property types dropped 6% year-over-year in August.

Real Capital Analytics relaunched and expanded its suite of commercial property price indices using a new methodology in early September 2017. To learn more about the RCA CPPI 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.

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