US commercial property price growth continued its upward trajectory in February with all four major property types posting double-digit annual price growth, according to Real Capital Analytics.  

Leading the way was the industrial asset class, whose prices climbed 28.5% from a year prior, the fastest annual rate among the major property sectors in February and a record for any property type since the inception of the RCA CPPI, RCA's Michael Savino wrote. 

It is easy to see why. Tight market conditions and rising land and construction costs in many markets and port cities led to limited development limiting new supply while demand for industrial warehouse space has continued to grow, Eli Randel, CREXi Chief Strategy Officer, explains. "In some instances, industrial space is being taken offline and converted into other uses. The result is tight market conditions, quickly growing rental rates, and increased investor appetite for product," he tells GlobeSt.com.