U.S commercial property prices rise 6.3% y-o-y in February

U.S commercial property prices

Real Capital Analytics has released its latest CPPI (Commercial Property Price Indices) report.

According to Real Capital Analytics, U.S national all-property index rose 0.6% in February from January, and 6.3% from a year ago. Industrial properties led price growth.

Prices of industrial properties increased 1.0% in February from January. The sector also posted the largest year-over-year gain of 8.2%, just outpacing the apartment index, which was up 8.1% from a year ago. The growth in apartment prices was weighted to 2018, though, with only a 0.4% monthly increase in February.

The CBD offce index posted a relatively strong monthly gain of 0.6% and year-overyear growth of 2.1%. Suburban office on the other hand has lost its momentum from last year, coming in flat for a third consecutive month. The all office index increased 5.3% since last February but was only up 0.5% over the last quarter.

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Retail prices climbed 0.3% from January, and 2.9% YOY. This sector experienced drastic declines in price growth in 2015 and 2016 but has been slowly making up ground since then. The level of annual growth seen this month was the highest the sector has shown in more than two years.

Prices in the Non-Major Metros continued to outpace the 6 Major Metros, but the gap between the two is narrowing. Non-Major Metros prices were up 6.7% YOY, while Major Metros were up 4.0%.

Note: The 6 Major Metros (6MM) are Boston, Chicago, Los Angeles, New York, San Francisco and Washington DC. Non-Major Metros (NMM) refers to all secondary and tertiary markets.