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Commercial property prices continued to increase in the third quarter of 2019, though the pace of growth has slowed, according to Real Capital Analytics’ CPPI Global Cities report for Q3 2019. While prices increased 4.3 percent from a year ago, the strongest periods of growth were seen more than six months ago, with prices up only 0.4 percent versus the second quarter of 2019.
North America posted the strongest price growth in the quarter, with the composite index for the region up 6.7 percent year-over-year (YOY), unchanged from a quarter ago. Annual price growth decelerated in both the Asia Pacific and EMEA regions.
Boston led not only North America but the world for price growth in the third quarter. Commercial property prices increased 17.6 percent YOY. The city’s office sector has been a leading source of growth, with acquisitions by Boston-based institutional investors helping to push office cap rates lower.
