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Industrial Leads as CRE Pricing Posts 22.9% Annual Gain
Led by industrial, commercial property price growth accelerated further in December, Real Capital Analytics reported. The RCA CPPI National All-Property Index grew 22.9% over the past year and 3.6% from November.
Industrial property pricing posted a 29.2% annual increase and a 3.3% monthly gain in December, with both rates the fastest of all the property sectors. Industrial has led property price growth since mid-2020.
Apartment prices posted a year-over-year gain of 23.6% another record for this sector. December was the eighth consecutive month of double-digit price growth, and deal volume in the apartment sector trounced all previous annual records last year.
Retail properties also saw healthy price growth of 21.5% Y-O-Y, rebounding from a trend toward declines as recently as 10 months ago. Deal activity returned to pre-pandemic trends in 2021, although it was boosted by one-off entity-level transactions. Only office held back, with CBD office price growth especially sluggish.
- ◦Sale/Acquisition
