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Commercial property prices rise 1% in August
- November 1, 2018: Vol. 30, Number 10

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Commercial property prices rise 1% in August

by Loretta Clodfelter

Commercial real estate values rose in August, driven higher by multifamily-property sales growth and rising prices in secondary and tertiary markets, according to Real Capital Analytics’ Commercial Property Price Indices. In August, the U.S. National All-Property Index rose 1.0 percent from the previous month and 7.7 percent year over year. Prices in secondary and tertiary markets are accelerating, compared with those in primary markets, according to the index series. RCA notes, “The pace of annual growth has accelerated in the Non-Major Metros over the past year, while the 6 Major Metros pace has cooled.” Although prices rose 6.1 percent year over year in primary markets (Boston, Chicago, Los Angeles, New York City, San Francisco, and Washington, D.C.), prices rose 8.1 percent in secondary and tertiary markets. Looking at property types, the strongest growth was in the apartment sector. Multifamily property prices in August are up 12.3 percent, year over year, wit

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