Commercial Real Estate Price Growth Led by Industrial Sector: Real Capital Analytics

By Michael Tucker

U.S. commercial real estate prices rose 0.8 percent in April, led by industrial property price growth, reported Real Capital Analytics, New York.

April's increase increased the annual price growth rate to 6.7 percent, RCA Senior Analyst Willem Vlaming said. 

Industrial property prices rose 10.3 percent year-over-year, "a rate of price growth not observed for this sector since 2015," Vlaming said. Industrial property price growth began to accelerate in mid-2018 and reached 1.3 percent in April. 

Meanwhile, apartment sector price growth waned, RCA reported. While the 7.1 percent year-over-year increase was the third-largest among various property types in April, apartments posted returns exceeding 10 percent for most of the last eight years.

Office prices rose 6.1 percent from a year ago and 0.8 percent from March, RCA said. Central business district office prices posting an 8.1 percent yearly return while suburban office prices logged a 5.3 percent annualized gain in April.

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