RCA Insights

US Price Growth Speeds Up; Industrial Leads Again

By on June 20th, 2019

U.S. commercial real estate prices rose in May at their fastest annual rate so far this year, the latest RCA CPPI summary report shows, propelled by a jump in industrial property prices. The US National All-Property index increased 1.1% in May from April and 7.2% from a year ago.

Industrial came out on top of the property types again, with prices rising 1.5% from April. Even as deal volume has been falling for this sector, prices have continued to rise amid investor demand. Warehouse properties in the supply chain have attracted investment as the retail landscape changes.

Deal activity levels in the industrial sector dropped again in May, as reported in the latest edition of US Capital Trends, also released this week. The decline points to a lack of significant entity and portfolio deals compared with a year ago, rather than a lack of buyer interest. Megadeal volume will get a boost when Blackstone’s announced $18.7 billion purchase of GLP assets closes.

Apartment, retail and CBD office price growth also ticked up in the month. Suburban office price increases slowed; growth in this sector has been slipping since August 2018.

1906 US CPPI Insights_1


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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.