RCA: Property Pricing Posts Fastest Annual Growth on Record

Article originally posted on HERE on November 24, 2021

Harvill Logistics Center Inland Empire California

The headline rate of U.S. property price growth climbed to the fastest annual rate in the history of the RCA CPPI in October amid intense investor demand, Real Capital Analytics reported. The RCA CPPI National All-Property Index rose 15.9% from a year ago and 1.7% from September.

Year to date through Oct. 31, investors acquired $523.8 billion of commercial property assets, a 70% increase over the same period in 2020.  Investors spent more than $200 billion on apartment properties in the first 10 months of 2021, almost double the year-to-date activity in 2020, and more than $100 billion on industrial properties.

Industrial prices rose 18.9% in October from a year ago and 1.9% from September, the fastest annual and monthly rates among the major property sectors. The apartment index climbed 16.8% from a year ago, the fastest rate in the history of the RCA CPPI for this sector.

Pictured: Harvill Logistics Center in California’s Inland Empire, which Rockefeller Group traded for $57.5 million in September.