August 28, 2018 Comments Off on RCA: U.S. Commercial Property Price Growth Wanes in July Views: 3168 California News, Top California

RCA: U.S. Commercial Property Price Growth Wanes in July

Annual growth in U.S. commercial property prices lost steam for the fourth consecutive month in July, according to Real Capital Analytics’ (RCA) latest RCA CPPI summary report. The U.S. National All-Property Index rose 7% year-over-year in July, almost half the pace of price growth shown in early 2015. Prices rose 0.7% in July from June.

RCA’s Elizabeth Szep wrote, “Price gains across property types continue to diverge. Apartments posted the highest monthly and annual increases in July. Apartment sector prices rose 12% from a year ago, driven by growth in secondary and tertiary markets.”

The report also notes CBD office prices gained just 1.3% from a year earlier in July, the weakest price increase among the property types, and retail prices grew 1.8%. Szep points out more muted price growth may be kindling CBD office sales. Transaction volume in the office sector increased by more than 30% year-over-year in July, bolstered by single asset sales in the CBD office market.

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