RCA Insights

Industrial, Apartment Prices Bolster US Growth in December

By on January 21st, 2021

The headline rate of U.S. commercial property price growth accelerated into the last month of 2020, gathering strength on the back of robust apartment and industrial sector price increases. The US National All-Property Index grew 7.3% from a year earlier, the latest RCA CPPI: US summary report shows.

The industrial index posted a 0.6% monthly gain in December and rose 8.8% year-over-year. This represents a minor slowdown in the pace of growth from the past few months, but the sector still registered the largest annual increase of any property type. Annual price gains in the apartment sector reached 8.3%, with 0.9% of that increase coming in December.

RCA CPPI year-over-year change December 2020

Both the apartment and industrial sectors registered growth in deal volume in December versus a year ago, as shown in the latest edition of US Capital Trends, also released this week. These were the first year-over-year gains in deal activity for any property type since March and the arrival of the pandemic.

The retail sector has consistently underperformed the other property types in 2020 and was the only index to post a negative annual return in December, down 4.3%. Office prices saw a slight uptick into year-end, gaining 1.5% from a year ago. Still, this rate marks a petering out of the price growth seen before Covid-19 struck.


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.

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