CRE Price Growth Has Been Strong Over Past Year
- For Apartments, Phoenix led price growth, up 35% YOY, followed by Memphis, +31%, and San Antonio, +23%
- Tampa, +20%, and Philadelphia, +18%, led Retail growth; For Industrial, Phoenix was up 30% and Atlanta 25%
- Atlanta’s 32% Office price appreciation was double the next largest gain of 16% in Palm Beach County, FL
Past Price Prices Does Not Dictate Future Value
- Investors should not rely on prior appreciation as a signal of what future prices will do
- Consider instead current price, loan rates and terms, current and future cash flow, and future values
Performance Metrics Keeping Up With Price Gains
- The outsized price gains have been paired with similar increases in rents and declines in vacancy
- Strong underlying demand drivers can maintain strong price appreciation, regardless of prior growth
As of 3Q 2021
Includes sales $2.5 million and greater
Sources: Marcus & Millichap Research Services, Real Capital Analytics