National + Retail | April 26, 2020

RCA Reports U.S. Commercial Property Prices Remain Firm

New research by Real Capital Analytics (RCA) reveals U.S. commercial real estate price growth of 0.7% increase in the past month and a 7.2% increase over the past year. RCA economists point out, however, the numbers of closed deals in the month do not yet reflect the COVID-19 health crisis that has all but shut down the U.S.

RCA’s US National All-Property Index showed apartment property price growth was the fastest of the sectors for the second consecutive month, with growth outpacing the industrial sector. Apartment prices jumped 11% from a year ago, and gained 1% on the month.

Industrial prices had posted the fastest growth rate for more than a year, but in recent months the clip has eased, notes RCA. The index increased 0.6% from February and 8.9% YOY. Industrial sector prices were increasing at a 12.5% annual rate as recently as July.

Prices in the office market climbed 5.7% YOY, more than double the rate of growth seen just seven months ago. Suburban assets drove these gains, as they recorded 5.8% annual growth. Price increases in CBD areas slowed to 3.1% YOY.

Retail prices edged higher, gaining 0.3% from February and 2.8% YOY, says RCA. Annual growth in this sector has been sluggish over the past few years, hovering around a mid-2% rate.

In the six major metros RCA tracks, price growth slowed to 5.8% YOY. Price gains in the non-major metros quickened to 7.3% YOY. RCA predicts price recovery will emerge as sellers adjust their expectations to those of buyers amid the economic and financial upheaval.

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About Dennis Kaiser

Dennis Kaiser is Vice President of Content and Public Relations for Connect Commercial Real Estate. Dennis is a communications leader with more than 30 years of experience including as a journalist and in corporate and agency marketing communications roles. He is responsible for Connect’s client content operations and is involved in a range of initiatives ranging from content strategy, message development, copywriting, media relations, social media and content marketing services. In his most recent corporate communications roles, he led a regional public relations effort across Southern California for CBRE, played a key marketing role on JLL’s national retail team, and was responsible for directing the global public relations effort at ValleyCrest, the nation’s largest commercial landscape services company. In addition to his vast commercial real estate experience, Dennis has worked on communications and launch strategies for a number of residential projects such as Disney’s Celebration in Florida, Ritter Ranch in Palmdale California (7,200 homes, 22,000 acres), WaterColor in Florida and PremierGarage in Phoenix. Dennis’s agency background included firms such as 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, BoyScouts, Chrysalis Foundation, Freedom For Life, HOLA, L.A.’s BEST, Reach Out and Read, Super Bowl Host Committee, and Thunderbirds Charities.

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