Commercial Property Pricing Gains Climb Back to Near-2019 Levels

Real Capital Analytics’ US National All-Property Index rose 6.9% year-over-year in January, climbing back to near the growth rates seen for much of 2019, prior to the pandemic. The index of pricing increases rose 1.2% in January from December, nearly 100 basis points higher than the pace of a year ago.

Although industrial predictably led the way with 8.3% year-over-year growth in pricing, office was the comeback kid among property types, posting 3.3% Y-O-Y gains after showing no growth as recently as August. The gains were all in the suburban office sector, though, wih prices on CBD properties down 0.8% Y-O-Y as of January.

Multifamily prices increased almost on par with the National All-Types index, up 6.8% in January over the previous year. The retail index was once again the worst performing and the only sector posting a declining annual pace, down 1.8% Y-O-Y.

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