Although, the US National All Property Index measuring property sales growth was a positive 6.2% from 2017, the pricing growth slipped a little from the 8.5% growth measured from the year prior.
The strongest sector of commercial real estate for 2018 was apartments. The Apartment sector price growth was 8.9% year over year. The price increases for apartments was attributed to its growth in secondary and tertiary markets over the past two years.
The second strongest sector within commercial real estate was suburban office which, compared to the year prior, registered a healthy 8.2% growth year over year, which almost doubled its pace from the prior year.
Industrial properties experienced 7.9% growth from the previous year, which reflected investor optimism in the ever-changing and dynamic national supply chain.
Although the retail sector experienced a surge of transactional activity, the price growth for this sector was 2.0% year over year, although current retail pricing has still not rebounded from the 2007 numbers.
When factoring inflation, all property types show a 4% growth compared to the 2007 peaks.
Source: Real Capital Analytics
