US Commercial Real Estate Prices Climbed 18.5% in June

Prices of U.S. commercial real estate continued to grow at a double-digit rate in June amid sustained demand for the asset type. The RCA CPPI National All-Property Index climbed 18.5% in June from the prior year, close to recent growth rates and just below the record-high pace of 19.5% in January.

Price increases in the industrial and apartment sectors were the largest among the property types. The industrial sector outpaced all property sectors with a 26.9% annual gain. The apartment index showed a 23.7% increase from a year ago.

Retail eclipsed office

The annual pace of increase for the retail index held steady in June at 18.8%. Price growth for retail retreated only 110 basis points from the record high achieved early in 2022.

Price growth for suburban offices slowed since its peak annual rate of 15.0% in September of 2021, posting only a 9.7% year-over-year increase in June. The price growth of offices in central business districts also eased in June. The index rose 7.6% from a year prior.