RCA Insights

US Price Growth Slows in March as Deal Volume Slips

By on April 25th, 2019

Annual growth in U.S. property prices slowed in March to the most modest rate since 2011, the latest RCA CPPI summary report shows. The waning of annual price growth comes as the pace of commercial real estate dealmaking also slows. U.S. investment volume was down 11% in the first quarter of 2019 from a year earlier.

1904 US CPPI_national_1

The US National All-Property Index rose 5.8% from a year ago and 0.4% from February. Apartment prices weren’t immune to the ebbing price growth, posting only a 0.4% increase in March. Prices grew 7.3% YOY – second only to the industrial sector – but apartment prices had been gaining close to 13% a year ago.

Industrial prices grew 8.0% from a year prior. Strong demand pushed acquisitions of individual industrial properties to a record level for any first quarter period in early 2019, as shown in the latest edition of US Capital Trends, also released this week. Retail prices posted a 1.9% YOY gain in March, the slowest growth among the property types and exactly in line with inflation.

The office sector rose 0.5% from February and 5.2% from a year ago. While suburban office price gains have weakened since last year, CBD office price growth has been picking up speed. CBD offices logged an uptick of 4.2% 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 customer you can access RCA CPPI reports and run your own pricing analysis on the client-only RCA website.

Wyatt Avery

Wyatt Avery joined Real Capital Analytics in 2016. He is a senior analyst in New York, specializing in cross-border capital flows and the RCA CPPI. He is a leader on several US-focused publications.