Which Three Property Types Had the Strongest Price Growth?

• RCA’s Commercial Property Price Index said the below sectors had the strongest YOY price increase as of August

  • • Suburban Office: +14.8%

  • • Apartment: +14.7%

  • • Industrial: +13.6%

• Elevated prices for Multifamily and Industrial is unsurprise – Both registered strong rent growth & falling vacancy

• Meanwhile, Suburban Office prices are driven more by the future outlook than current fundamentals

• As Millennials age, many investors are betting the cohort will start families and move to the suburbs much like previous generations

• As a result, employers could begin to shift office operations out of the CBD and into surrounding areas where their workforce is relocating to, strengthening office space demand

• Investors are positioning assets in the path of this growth, hoping to capitalize on the trend