• 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 unsurprising – 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, strengthening office space demand
  • Investors are positioning assets in the path of this growth, hoping to capitalize on the trend