CRE Sector Sees Price Growth, but Fewer Deals in January: Real Capital Analytics

Originally published by Michael Tucker on March 1, 2021.

U.S. commercial property prices grew again in January, sector analysts reported.

“The pace of U.S. commercial property price growth accelerated in January, climbing back near the growth rates seen before COVID-19 struck,” said Real Capital Analytics Senior Analyst Wyatt Avery. The RCA All-Property Index rose 1.2 percent from December and 6.9 percent from a year ago.

The acceleration in price growth came even as deal volume slumped again in January, Avery noted.

Office prices rebounded into the new year to a point 3.3 percent higher than January 2020. “As recently as August this index was posting no annual growth,” Avery said. “Suburban offices drove the increase.”

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