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RCA Reports 7.1% US CRE Price Growth in 2017
The latest Real Capital Analytics (RCA) CPPI summary report shows U.S. commercial real estate prices rounded out 2017 with strong annual growth, in spite of deal volume declines. RCA says its National All-Property Index climbed 7.1% in December from a year earlier, and prices now sit more than 23% above their peak before the global financial crisis a decade ago.
RCA’s Elizabeth Szep notes, price growth for 2017 was propelled by gains in the apartment and industrial sectors. Apartment prices rose 10.6% year-over-year, driven primarily by gains in secondary and tertiary markets, and industrial prices grew 6.1%.
Industrial assets were the single property category that logged deal volume growth in 2017, up 20% from 2016. Coupled with the strongest price growth among commercial types, industrial was an investor favorite for the year.
RCA reports office and retail prices lagged other types in 2017. Office prices rose 3% year-over-year and retail prices edged 1.1% higher. In 2016, by contrast, office prices had grown the most among commercial types. Retail growth remains in last place, consistent with the year prior.
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