U.S. commercial property prices increased by 6.7 percent year-over-year in August, 0.8% from July, even as deal volume slid for a second consecutive month, according to the latest Real Capital Analytics CPPI (Commercial Property Price Indices) summary report.
”Prices have continued to increase in part because of a well-functioning debt market. The ability to refinance properties rather than sell them has kept prices sticky, as noted in the current edition of US Capital Trends,” said in RCA CPPI summary report.
The industrial sector continues to buttress the headline rate of annual price growth, climbing 12.5% over the past year. Monthly price gains for the sector eased to a 0.4% pace, however.
SEE ALSO : U.S commercial property price growth steady in July
After the industrial index, apartment properties posted the second strongest annual gain in August, rising 7.1%. Multifamily price growth lost steam in 2018, but the sector has posted consistent gains in recent months.
Retail prices rose 0.2% for the month and 2.2% YOY. Prices for the struggling asset class have remained flat for most of 2019, even as volume has declined sharply.
Office prices were the slowest growing of all the major asset types, up just 2.0% from a year ago. The index was dragged down by suburban prices, which slipped to a tepid 0.9% YOY increase.
