RCA Insights

US Price Growth Slows in June, Report Shows

By on July 26th, 2018

U.S. commercial real estate price growth slowed to 0.4% in June, again registering a lower rate of increase than seen earlier in 2018, the latest RCA CPPI summary report shows. The index rose 6.5% year-over-year, also a slower pace than seen earlier in the year.

1807 US CPPI_overviewYOY

CBD office prices posted a 0.1% decline from a month prior. A large dip in prices in Manhattan, the largest CBD office market in the U.S., dragged on the national index.

Buyers and sellers are coming closer together on price expectations in Manhattan and deal volume has picked up, as shown in the latest edition of US Capital Trends, also released this week. Office deal activity in Manhattan climbed 26% in the first half of 2018 versus a year prior.

Suburban office price growth continues to diverge from CBD office pricing. Suburban office prices rose 1.1% in June from May, the fastest monthly growth rate of the property types.

Industrial prices declined in July but are on par with national growth on an annual basis. Tepid growth in Non-Major Metros dragged down the sector’s price gains; this is likely a blip and not a trend. Retail price growth was flat for the month and apartment prices grew 1.0%, the second fastest monthly rate among the property types.

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.