Industrials price rise outstrips other sectors; Paramount rejects buyout offer

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Industrial asset prices rose 28.5% in February, the fastest of all major commercial property sectors and the highest rate of increase since its record began, according to RCA CPPI data.

The US National All-Property Index climbed 19.4% year over year and 0.8% month over month, it said in its US Report.

Office prices diverged by location. Central business district assets rose 4.7% year on year, after falling for much of 2021, the report said. Suburban office properties dipped 10.1% following a growth streak in recent months.

Apartment asset prices grew 23.2%, the fastest annual price increase recorded in the sector, while the 21.1% increase in retail asset prices was the highest RCA CPPI has ever recorded for the sector.

M&A

* Paramount Group Inc.'s board rejected Monarch Alternative Capital LP's $12.00-per-common-share buyout offer. The unsolicited, nonbinding proposal undervalues the office real estate investment trust and does not consider the company's future value-creation potential, the board said.

* Switch Inc. is considering its strategic options, including a sale, Bloomberg News reported, citing people familiar with the matter. The data center operator is working with advisers, the report said.

Property

* An affiliate of The Carlyle Group Inc.'s global credit arm completed the $3.07 billion acquisition of iStar Inc.'s portfolio of owned and managed net lease assets. The portfolio spans 18.3 million square feet and comprises institutional quality office, entertainment and industrial space spread across the U.S.

* CBRE Group Inc., The William Warren Group Inc. and StorQuest Self Storage bought a 64-property self-storage portfolio from World Class Holdings for $588 million. The assets span more than 4.1 million rentable square feet across Texas, Ohio, Illinois, Colorado, Missouri, Mississippi, Tennessee, Indiana, New York and Nevada.

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