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RCA Report Shows Global Price Growth Wanes in Q1

Any doubt that pricing for global commercial real estate may be tapering off was removed in Real Capital Analytics’ (RCA) latest CPPI Global Cities report. Growth slowed at the start of 2018, with the composite showing an increase of 1.6% in Q1 2018 from a quarter earlier, and an 8.4% bump from a year ago.

RCA notes a number of key markets posted flat-to-modest quarterly declines in prices. Los Angeles, San Francisco, London and Melbourne all registered price drops for Q1 2018. There was only a single market among the 18 that contribute to RCA’s Global Cities Composite which displayed an annual drop in prices.

Elizabeth Szep, a researcher at RCA, says, “Though a quarter does not represent a trend, the quarterly slowing in some markets may indicate that investors are taking a moment to regroup after several years of sustained price growth in real estate markets worldwide. In most cases, the markets posting price declines for the quarter are those which have grown the most over the past five years.”

She points out that Los Angeles, San Francisco, London and Melbourne all experienced above-average growth over the past five years. Within New York, the Manhattan market posted a quarterly decline, as did the central area of Sydney. In these two cases, growth for the overall market has remained positive despite the city center declines, notes Szep.

For comments, questions or concerns, please contact Dennis Kaiser

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About Dennis Kaiser

Dennis Kaiser is Vice President of Public Relations and Communications for Connect Creative. Dennis is a communications leader with more than 40 years of experience including as a journalist and in corporate and agency marketing communications roles. He is responsible for Connect Creative’s agency client services and is involved in a range of initiatives ranging from public relations and content strategy, communications and message development, copywriting, media relations, social media and content marketing services. Prior to joining Connect Media in 2015, his most recent corporate communications roles involved leading a regional public relations effort across Southern California for CBRE, playing a key marketing role on JLL’s national retail team, and directing the global public relations effort at ValleyCrest (BrightView), the nation’s largest commercial landscape services company. He has worked on marketing communications assignments for such CRE companies as Blackstone/Equity Office, Carlyle, Caruso, Disney Resorts, GE Capital, Irvine Company, Hines, Howard Hughes Corp., Jeffries, Lennar, MGM, Marcus & Millichap, Prologis, Raleigh Studios, Simon, Starwood, Trammell Crow Company, Transamerica, UBS and Wynn Resorts. Dennis has also worked on communications and launch strategies for a number of consumer electronic, media and tech brands including SlingMedia, Channel Master, Deluxe Media Entertainment, BeIn Sports, EchoStar and Sprint. Dennis’s agency background included firms such as Off Madison Ave., Idea Hall and Macy + Associates. He has earned an outstanding reputation with organization leaders as a trusted advisor, strategic program implementer, consensus builder and exceptional collaborator. Dennis has developed and managed national communications programs for Fortune 500 companies to start-ups, both public and private. He’s successfully worked with journalists across the globe representing clients involved in major-breaking news stories, product launches, media tours, and company news announcements. Dennis has been involved in a host of charitable and community organizations including the American Cancer Society, Easter Seals, Boy Scouts, Chrysalis Foundation, Freedom For Life, HOLA, L.A.’s BEST, Reach Out and Read, Super Bowl Host Committee, and the Thunderbirds Charities.

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