By Wyatt Avery on March 26th, 2020
U.S. commercial property prices maintained a steady pace of growth in February, with the US National All-Property Index gaining 6.7% from a year prior, the latest RCA CPPI summary report shows. These gains correspond with the solid deal activity seen in January and February, before COVID-19 rattled the U.S. market.
Price growth for apartments was the fastest among the property types in February, nudging ahead of industrial sector growth for the first time since 2018. Multifamily prices increased 10.4% year-over-year, while industrial prices gained 9.9%.
Retail sector prices increased 2.4% in February. The sector has maintained growth in the mid-2% range for much of the last two years, but the economic impact of the coronavirus outbreak may jeopardize even that small growth rate in the future.
Commercial property investment edged higher in February, as reported in the latest edition of US Capital Trends, also released this week. Overall deal volume was at a generally elevated level, though hotel and retail sector activity faltered, even before the coronavirus crisis erupted in March.
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 on the RCA website.
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