Which 3 Property Types Had the Best Price Growth?
October 2021
Video Highlights
According to RCA’s Commercial Property Price Index, the following sectors had the strongest YOY prices increases as of August, 2021:
Suburban Office: +14.8%
Apartment: +14.7%
Industrial: +13.6%
Elevated prices for Multifamily and Industrial is unsurprising as both asset types registered strong rent growth and falling vacancy.
Suburban Office prices are driven more by the future outlook than current fundamentals. Investors are betting the aging millennial cohort with start families and move to the suburbs.
Employers could begin to shift office operations out of Central Business Districts and into surrounding areas.
Investors are positioning their assets in the path of this growth, hoping to capitalize on the trend.