RCA Insights

US Prices Climb in October While Deal Volume Wavers

By on November 21st, 2019

U.S. commercial property price growth pushed higher in October, the latest RCA CPPI summary report shows. Prices have remained strong even as an apparent disconnect between buyers and sellers has taken a toll on deal volume. The US National All-Property Index increased 0.8% for the month and 7.5% from a year ago.

The industrial sector again posted the largest annual increase of any property type, as it has for the entirety of 2019. Industrial prices climbed 12.4% from last October, and 0.8% from the prior month. Annual price growth for the apartment, CBD office and suburban office sectors all picked up some steam in October, while price growth for retail properties was little changed.

Trends in deal volume for October painted a more cautionary picture of the U.S. commercial real estate investment market. Transaction activity across the property types dropped 30% compared with October 2018. Still, for the year to date, overall activity is only down 4% and sales of single assets are slightly ahead of the level 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 and US Capital Trends reports and conduct your own pricing analysis on the RCA website.

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