Industrial, Apartments Drive October Pricing Gains
Boosted by gains in the industrial and apartment sectors, U.S. commercial property pricing grew at a faster rate in October, Real Capital Analytics reported. RCA’s US National All-Property Index rose 3.6% from a year ago and 1.2% month to month, while the apartment index rose 7.2% year-over-year and the industrial index 8.5%.
“Multifamily has been one of the more stable assets during the current economic and health crisis, driven by activity in the secondary and tertiary markets,” RCA says. Year to date, apartment deal volume is down 40%, with only the industrial sector posting a shallower drop in volume.
Conversely, retail prices have declined 5.2% over the past year. First to register the pricing impact of COVID-19, the sector is now experiencing a low point in returns not seen since the end of 2010.
The office sector continued to fall at about a 1% annual rate during October, said RCA.
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