U.S. commercial real estate pricing grew at an annual rate of 1.4% in September, Real Capital Analytics reported. Continued gains in the apartment and industrial sectors balanced out declines in retail and office prices, according to the latest RCA CPPI: US summary report.
Retail prices dropped 0.7% from August and sank 5.3% from a year ago, and RCA sees more potential troubles ahead. Office pricing was basically flat for the month but declined 1.5% year-over-year.
Meanwhile, apartment prices gained 0.6% in September from August and posted a 6.7% Y-O-Y increase. Although RCA’s multifamily price index has slowed from its double-digit pace earlier this year, deal activity has fared better during the pandemic than most of the other property sectors.
The industrial index has been the most stable of RCA’s indices over the past several months, posting in the mid-7% annual growth range.
Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism.
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