RCA Insights

US Prices Gain 6.3% in February, Led by Industrial

By on March 28th, 2019

U.S. commercial property prices rose 6.3% from a year ago in February, led by gains in industrial property prices, the latest RCA CPPI summary report shows. The US National All-Property Index rose 0.6% in February from January.

Prices of industrial properties posted a monthly increase of 1.0% in February. The sector also posted the largest year-over-year gain of 8.2%, just outpacing the apartment index, which was up 8.1% from a year ago. The growth in apartment prices was weighted to 2018, though, with only a 0.4% monthly increase in February.

1903 US CPPI Main NEW_1

The CBD office index posted a relatively strong monthly gain of 0.6% and year-over- year growth of 2.1%. Suburban office on the other hand has lost its momentum from last year, coming in flat for a third consecutive month. The all office index increased 5.3% since last February but was only up 0.5% over the last quarter.

Retail prices climbed 0.3% from January, and 2.9% YOY. This sector experienced drastic declines in price growth in 2015 and 2016 but has been slowly making up ground since then. The level of annual growth seen this month was the highest the sector has shown in more than two years.

Industrial sector transaction volume posted a strong gain in February, though the increase was due to substantial portfolio sales, as shown in the new edition of US Capital Trends, also released this week. Across the property types deal volume fell 4% from a year earlier. Without the benefit of portfolio sales, the U.S. market would have seen a second consecutive month of double-digit declines in deal activity.

Real Capital Analytics publishes a monthly report on U.S. national price trends and a quarterly report on global price trends. Sign up to receive RCA CPPI: US and RCA CPPI: Global Cities by visiting rcanalytics.com

If you are an RCA customer you can access RCA CPPI reports and conduct your own pricing analysis on the client-only RCA website.