RCA Insights

US Property Price Growth Slows in May; Offices Sag

By on June 25th, 2020

The effects of the Covid-19 crisis have begun to catch up with U.S. commercial real estate prices. The US National All-Property Index gained 4.9% in May from a year earlier, the slowest pace of growth since 2011, the latest RCA CPPI summary report shows.

The office sector fared the worst in May, slipping 0.3% on the month and increasing only 1.6% from a year earlier. Annual growth in industrial property prices cooled to 6.1%, continuing the deceleration seen since mid-2019. Apartment prices grew 9.3% from a year ago, while retail prices increased 2.8%.

Transaction activity across the property types sank again in May, as concerns about the economy and the outlook for commercial property demand sidelined investors.

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 on the RCA website.

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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.