Profimex Market Review Update – March 4, 2021
CRE Price Growth Expands in January
According to the US summary report, published by Real Capital Analytics CPPI, US commercial real estate prices grew at a higher rate than those prior to the pandemic. The All-Property Index rose 6.9% year-over-year and 1.2% since December. Interestingly, even though it is still not clear when the work force will return to their offices, Real Capital Analytics claims that the sector rebounded 3.3% year-over-year in January.
Where the Industrial Pipeline Is
The industrial space, coming to US markets in 2021 is expected to be as high as 261.6 million square feet, an unprecedented number. Total square feet under development are even 337.8 million. Those markets with the greatest new supply are Memphis and Indianapolis with 12.2 million and 10.3 million square feet, respectively. Markets, such as Orange County, Boston, and Los Angeles on the other hand show a stagnating pipeline due to high prices. The industrial sector overall has benefitted largely by the pandemic with rents having increased 5.1% during 2020.