U.S. commercial property prices held a steady pace of growth in July, shored up by industrial sector price gains, according to Real Capital Analytics CPPI (Commercial Property Price Indices) report.
The US National All-Property Index rose 6.3% year-on-year in July and 0.7% from June, even as deal volume posted a sharp decline for the month, said Real Capital Analytics in the report .
Industrial was the only property type that posted accelerating price growth, up to 12.8% YOY. However, on the month the industrial index only rose 0.5%, its slowest monthly gain of this year.
SEE ALSO : U.S. commercial property prices rise 6.5% y-o-y in June
Price increases in the apartment sector slowed to 6.5% YOY in July, close to the pace of the all-types index. Apartment deal volume declined significantly in July, but for the year to date sales activity is still higher than the same period in 2018.
Office prices increased just 2.6% YOY. The CBD index slowed to a 5.1% pace of growth, while the suburban office index posted a mere 1.8% increase, the weakest annual growth rate for this sector since 2011. A year ago suburban office prices were growing at a near-9% clip.
Retail prices are still posting increases amid an uncertain time for this property type. Prices grew 2.2% YOY, well below most other sectors. Prices in the Non-Major Metros continued to outpace the 6 Major Metros. The NonMajor index grew 6.9% YOY, compared to 5.0% growth in the Major Metros.
