CRE Prices Soar; Industrial Properties Set Record: Report

Originally published on March 6, 2022 by Michael Tucker for Mortgage Bankers Association.

Real Capital Analytics, New York, reported U.S. commercial property price growth continued to appreciate at a double-digit pace in January.

The RCA National All-Property Index climbed 20.3 percent from a year earlier and 1.6 percent from December, Real Capital Analytics Senior Analyst Michael Savino said. He noted the price index for industrial properties rose a record 28.1 percent from a year ago, the fastest annual rate among the major property sectors.

The index for retail properties increased 20.4 percent year-over-year, also a record pace, and apartment sector prices posted a 22.5 percent annual gain, RCA reported.

Savino noted apartment property prices in January were 136 percent higher than their peak set just ahead of the Great Recession, far outpacing the next highest sector, industrial.

“Price gains for the office sector lagged in January,” Savino said. The office index rose 11.8 percent year-over-year, a fourth successive month of ebbing annual growth. “While central business district office price gains are creeping higher, suburban office price growth has lost steam in recent months,” he said.

Read More
Share this post: