Index Chart: Commercial Property Prices Continue Steady Growth
Commercial property prices have continued their upward climb through July, RCA says. The all-property composite index rose by 0.7% over the month and 2.8% over the past three. Retail assets led the way with a 1.7% jump, with apartments trailing closely behind (1%) and office properties coming in third at 0.2%. Over the past year, office buildings in Central Business Districts experienced the highest price appreciation at a whopping 23%. Industrial prices, however, decreased by 0.1%, validating their recent weak price appreciation. A five-year span from May 2010 to May 2015 turned out to be the best holding period for commercial assets, when the all-property category grew to 80.8%. Meanwhile, the worst came right before the financial crisis in May 2007 to May 2010. [NREI]
