RCA Insights

Industrial Sector Leads US Price Gains in June

By on July 25th, 2019

U.S. commercial property prices rose 6.5% in June from a year earlier, propped up by industrial prices which increased at their fastest rate since the start of 2015, the latest RCA CPPI summary report shows. The US National All-Property index gained 0.9% in June from May.

Industrial was the only property type to log increased annual growth in June – up to 13.3%. Investor demand for the sector has been robust but finding the right assets has proven challenging. Industrial sector sales volume dipped in the first six months of 2019 compared with a year ago, as noted in the new edition of US Capital Trends, also released this week. Deal volume is likely to rebound later in the year, however, with multibillion-dollar entity-level deals already announced.

Apartment prices grew 7.3% from a year ago. While the annual gain is still a sizeable return, it is far from the 12%+ gains the sector saw this time last year. Price growth has steadily ebbed since the start of 2018, even as sales volume hit a record high in the first half of 2019.

 

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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 customer you can access RCA CPPI reports and run your own pricing analysis on the client-only RCA website.

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