RCA Insights

US Prices Gain 6.7% in September, Industrial Leads

By on October 24th, 2019

U.S. commercial property prices rose 0.7% in September from August, maintaining the monthly pace of growth seen since May, the latest RCA CPPI summary report shows. The U.S. National All-Property Index rose 6.7% from a year ago.

There is wide variance in price trends across the individual property types. Apartment growth ticked up to an 0.8% monthly pace in September and quickened to a 7.7% annual rate, arresting the slowdown in price growth seen for this sector since early 2018.

The industrial index again posted the largest annual gain across the property types, up 11.9% YOY. Monthly price increases have slowed, however. Deal activity in the industrial sector climbed by 63% year-over-year in the third quarter of 2019, the latest edition of US Capital Trends shows, propelled by two giant portfolio transactions by Blackstone entities.

Price growth for both office and retail properties has softened significantly compared with the rates posted a year earlier. Office prices gained 3.1% year-over-year and retail prices only 1.4% year-over-year, the weakest rate for this sector since 2017. Deal activity in both these sectors was lower in the first nine months of 2019 compared to a year prior.

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 customer you can access RCA CPPI reports and run your own pricing analysis on the client-only 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.