May 25, 2018
Prices of U.S. commercial real estate rose overall in April, though they had to fight through modest declines posted by CBD office and retail properties. The latest Real Capital Analytics (RCA) CPPI summary report shows prices increased 0.6% in April from a month earlier, which translates into an increase of 8.2% year-over-year.
RCA’s Elizabeth Szep notes, CBD office prices are now negative on an annual basis, down 0.7% from a year ago. Retail prices have remained relatively flat for some time, despite bad press. They are down 0.1% from a month earlier, but remain slightly elevated on an annual basis, up 0.7% from April 2017.
The fastest monthly price increases were reported in the industrial sector, with industrial assets continuing to be an investor favorite. Prices rose 1.7% from a month ago, and are up 11.1% year-over-year. Mirroring this growth is deal activity, points out Szep. Volume for the first four months of 2018 is up nearly 25% for industrial properties, compared to the same period last year.
In April, most of the major property types registered double-digit declines in activity, and total deal volume for the month was at the lowest level since early 2013, reports RCA.
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