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CRE Prices Continue Healthy Gains, Says RCA
U.S. commercial property pricing continues to grow at a healthy pace as 2019 winds down, Real Capital Analytics reported. RCA’s U.S. National All-Property index rose 1.0% in November from October, and 8.7% year-over-year, while some property-type indices showed the strongest gains of the year in November.
Industrial in particular saw its biggest increase of 2019, with pricing up 1.2% from October and 13.6% Y-O-Y. Pricing on apartments, while off from the double-digit Y-O-Y increases the sector posted in 2018, rose 9.3% from November 2018.
Apartments have also been the one sector to consistently outperform RCA’s all-property-types indices over the past two years. Moreover, they’ve posted the highest price appreciation over the past 10 years: 160.3%.
Office has rebounded from a midyear dip in returns, posting a 6.7% Y-O-Y gain. Although retail’s 3.4% Y-O-Y pricing gain was the smallest among the property types, it’s well ahead of the sector’s two-year average.
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