RCA Insights

US Prices Increase 0.7% in March; CBD Office Ebbs

By on April 26th, 2018

The US National All-Property Index rose 0.7% in March from a month ago and climbed 8.5% from a year prior, the latest RCA CPPI summary report shows. Industrial properties led the monthly price gains, while CBD office prices edged down.

CBD office prices registered a 0.1% decline for the month and prices are down 0.5% for the quarter. Despite that, prices are still positive compared with a year earlier, up 3.1%.

1804 US CPPI

Price growth for the apartment and industrial sectors continues to lead the pack. Industrial properties remain a favorite among investors and a recent resurgence in apartment deal volume has helped push prices to new highs.

The transaction volume of apartment properties jumped 25% in the first quarter from a year earlier, as shown in the current edition of US Capital Trends, also released this week. Total transaction activity across the property types increased in Q1’18, ending a five-quarter run of declines.

Suburban office monthly price growth eclipsed apartment growth in March, increasing 0.7%. Monthly price growth for suburban offices has been accelerating since the start of Q4’17, and prices for suburban offices are up 5.0% YOY.

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.