RCA: July CPPI Shows Continuing Slowdown in Annual Price Gains
The pace of annual price growth across all major U.S. commercial property types slipped in July, though most indexes still showed double-digit gains, according to MSCI Real Capital Analytics. The RCA CPPI National All-Property Index rose 16.8% from a year ago, marking a continued slowdown from record rates seen at the start of 2022. The index rose 0.9% in July from June.
Price growth has eased as investors become more hesitant in the face of challenges such as rising interest and mortgage rates, and concerns over the chances of a recession, RCA says.
Office managed annual price growth of 8.2%, while retail increased 17.7% year over year, reflecting the fifth consecutive month of slowing growth.
The industrial sector index outpaced all others with an annual growth rate of 24.4%. However, this pace marked a retreat from nearly 27% earlier in 2022. The annual price increase for apartments dipped to 20.9%.
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. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces.
Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications.
Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).
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