Commercial RE Annual Price Growth Hits 6.7% in August
Despite overall deal volume sliding for a second consecutive month, The US National All-Property Index grew 6.7 percent from a year ago, according to a Sept. 26th report from Real Capital Analytics (RCA).
The report also shows that prices accrued 0.8 percent during August alone. RCA claims prices have continued to increase--in part--due to "a well functioning debt market."
"The ability to refinance properties rather that sell them has kept prices sticky, as noted in the current edition of US Capital Trends, also released this week," according to the RCA report.
Meanwhile, however, overall investment volume dropped 54 percent in August compared to a year ago. The industrial sector was the asset class leaser with annual price growth at 12.5 percent over the past 12 months. Apartment properties charted second place gains at 7.1 percent.