RCA Insights

US National Prices Increase 0.5% in February; CBD Office Prices Slip

By on March 22nd, 2018

U.S. national commercial real estate prices rose in February while prices for CBD offices slipped, the latest RCA CPPI summary report shows.

The US National All-Property Index rose 0.5% in February from a month earlier and climbed 8.1% from a year ago. The CBD office index dipped 0.8% in February from January and gained only 1.7% from a year prior, the smallest annual increase among the property types.

1803 US CPPI_sectors_v2

Suburban office prices are performing better. The pace of price increases had lagged other property types over the past several years, but annual growth has accelerated over the past two months. Prices rose 3.6% from February 2017 and gained 0.4% month-over-month.

Apartment and industrial price growth continues to top other types. Apartment prices grew 0.7% this month and industrial prices are up 1.3%.

While commercial property prices marched higher in February, transaction volume for the month was lackluster. Sales activity across the property types fell 10% year-over-year to the lowest monthly level  in nearly five years, as shown in the latest edition of US Capital Trends, also released this week. Worries over the impact of interest rate increases put a dampener on activity.

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