RCA Insights

US Price Growth Moves Higher in June, Led by Apartment

By on July 22nd, 2021

The headline gauge of U.S. commercial property price growth shifted higher in June, led by the apartment sector. The US National All-Property Index grew 9.8% from a year ago, the fastest annual growth rate since 2015, and 0.8% from May.

Apartment sector price growth, which had dipped as low as 6.9% during 2020, accelerated to 12.0%. Deal activity in this sector has gone beyond the recovery phase and in Q2 2021 was at a record high level for any second quarter period, as shown in the latest edition of US Capital Trends, also released this week.

Industrial property pricing, too, reflects an in-demand sector.  The industrial price index rose 9.8% from a year ago, staying in the 9%-10% range seen since the crisis began.

The office sector index rose 6.0% compared to the year prior, the best performance since 2018. Suburban office prices continued to lead the way, posting a 7.7% year-over-year growth rate. CBD office prices continued to decline, falling 2.4% annually. 

Retail prices rose 3.2% from a year ago. While this rate is an improvement on the pace seen in recent quarters, it is still below the overall pace of inflation in the U.S. economy.

==

© Real Capital Analytics

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.