By Elizabeth Szep on December 21st, 2017
U.S. commercial real estate prices touched new highs in November even as deal activity sagged, the latest RCA CPPI summary report shows. The US National All-Property Index climbed 1.2% in November from a month earlier and climbed 9.1% from a year ago.
Prices continue to be pushed upward by the apartment and industrial sectors. Apartment prices rose 10.2% year-over-year in November, mainly driven by growth in secondary and tertiary markets. Industrial prices climbed 9.8% year-over-year.
U.S. deal volume, by contrast, dropped 31% year-over-year in November, with the four largest property types registering double-digit declines. The continued divergence between volume and pricing trends indicates a mismatch between buyer and seller price expectations, a theme which is discussed in the new edition of US Capital Trends, also released this week.
The industrial sector stands as the only property type where deal activity has increased for year-to-date 2017 compared with the same period in 2016. It has surpassed the retail sector in 2017 to become the third largest market behind apartment and office.
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.