U.S. commercial property prices rose by 6.5% year-on-year in June, industrial sector which prices increased at their fastest rate since the start of 2015, led U.S. price growth again this month, according to Real Capital Analytics CPPI (Commercial Property Price Indices) report. The US National All-Property index gained 0.9% in June from May.

Industrial property prices prices increased by 13.3% year-on-year in June. According to the RCA CPPI report, despite robust investor demand for the sector, industrial property sales decreased in H1, 2019 compared to the same period last year.

Apartment prices rose by 0.9% in June compared to last month and 7.3% from a year ago.

Annual office price growth slipped to 4.0%, with suburban office prices registering only a 3.1% gain. CBD prices aided the index with a 7.6% YOY increase, up from a meager 2.4% gain a year ago. Prices for the retail sector rose just 1.6% year-on-year in June.

The gap between price gains in the 6 Major Metros and Non-Major Metros narrowed in June. Price growth in the Major Metros quickened to a 6.2% YOY clip, while Non-Major Metro prices rose 6.6%, hovering near the same rate seen throughout 2019 so far.

Note: The 6 Major Metros (6MM) are Boston, Chicago, Los Angeles, New York, San Francisco and Washington DC. Non-Major Metros (NMM) refers to all secondary and tertiary markets.

Source: Real Capital Analytics