RCA Insights

US Price Growth Accelerates Into Year-End: RCA CPPI

By on December 19th, 2019

U.S. commercial property prices rose at the fastest annual pace since early 2018 in November, the latest RCA CPPI summary report shows. The US National All-Property Index increased 8.7% from a year ago and 1.0% from October.

Several property types registered the strongest annual gains of the year so far in November. Industrial price growth quickened to 13.6% year-over-year, CBD office to 6.7% and apartment to 9.3%. Even retail price growth accelerated, though it is still the weakest of the major property types at just 3.4% year-over-year.

Prices are continuing to climb even as there’s a lull in deal activity into the end of the year. This combination suggests that owners and potential buyers are moving apart on price expectations, with those transactions that do close involving more motivated buyers. The latest US Capital Trends report, also released this week, shows that all the major property types registered double-digit deal volume declines in November versus a year ago.

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.

US Capital Trends is a monthly publication comprising an overview report on the U.S. commercial real estate market and individual reports for the five major property types. Contact us to learn more about receiving these publications. 

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