The 3 Property Types With The Greatest Price Appreciation
Industrial Properties Maintain Strong Investment Outlook
- Industrial had 3rd strongest price gain, at 13.6% Y-O-Y; Rents grew 5.9%, vacancy fell 30 bps to 5% in 2Q 2021
- Thriving eCommerce and current supply chain issues have drawn significant investor interest
- Investors penciling aggressive rent gains into valuations
Underlying Demographic Trends Bolster Apartment Demand
- Apartments had 2nd greatest price growth, 14.7% Y-O-Y; Through 2Q, rents grew 4.3% and vacancy fell 90 bps
- Aging millennial population and limited housing supply to support long-term Apartment demand
Suburban Office Comes Out on Top
- Suburban Office had strongest price growth at 14.8%; While rents up only 0.6%, vacancy rate up 230 bps Y-O-Y
- Price gain result of recuperating losses, sale composition with stronger assets and investor speculation
- Investors betting on workers relocating to the suburbs, pulling employers and businesses with them
As of August 2021
Includes sales $2.5 million and greater
Sources: Marcus & Millichap Research Services, Real Capital Analytics