US Commercial Property Prices Up 7.8% YOY in December 2019
January 27, 2020
Commercial property prices across the U.S. increased for the sixth consecutive month in December 2019, climbing 7.8% year over year and 0.7% month over month, according to the latest data from Real Capital Analytics.
Based on the U.S. National All-Property Index, the industrial segment posted the largest annual price increase in December 2019, rising 12.1% year over year. Apartment property prices jumped 9.6% annually, the second-highest rate of growth.
The office and retail sectors logged property price gains for the month of 4.1% and 3.8% year over year, respectively.
One nontraded REIT, Blackstone Real Estate Income Trust, was well positioned to benefit from the increases in industrial and apartment properties. The REIT owned 748 industrial properties and 158 multifamily properties as of December 31, 2019. Noticeably under-represented in the REIT’s portfolio were office (0) and retail properties (5).
Property prices in the six largest metropolitan markets — Boston; Chicago; Los Angeles; New York; San Francisco; and Washington, D.C. — experienced year-over-year gains of 5.9% in December 2019, outperformed by non-major metros with 8.3% growth, according to RCA.
Source: S&P Global Market Intelligence, Blue Vault
