Commercial Property Pricing Recovery Continues Despite Seasonal Volatility Secondary Markets and Property Types Outperform Core as Recovery Progresses

2012-04-11 2012 COMMERCIAL REAL ESTATE PRICES MIXED: GENERAL COMMERCIAL SECTOR GAINS MOMENTUM WHILE INVESTMENT GRADE SEES SEASONAL DIP SLOW BUT STABLE PRICING GROWTH IN GENERAL COMMERCIAL INDEX SIGNALING THAT THE RECOVERY IS BECOMING MORE BROAD-BASED APRIL 2012 CCRSI RELEASE (With data through

U.S. COMPOSITE property prices ADVANCE IN JANUARY ON IMPROVING FUNDAMENTALS, RISING LIQUIDITY AND DECLINING number of DISTRESSED SALES

Multifamily led all property types in pricing gains; northeast region advanced furthest in recovery; pricing for investment grade outperformed general commercial reflecting investor preference for major markets and core assets

Investment-grade prices post solid monthly gain, while general commercial properties continue to see modest but steady growth.

Investment-grade, general commercial property prices post solid monthly gains, level of distress sales continues to decline. 

Increases for both INVESTMENT-GRADE and GENERAL COMMERCIAL property PRICES ACCOMPANIED by continued multifamily price recovery and declining distress sales.

After four consecutive months of positive price movement, CoStar’s monthly National Composite Index of commercial real estate prices posted a slight decline of 0.5% in August 2011, driven mainly by softening pricing of high-end commercial properties, the segment most sensitive to the recent global financial market upheaval.

This month’s CoStar Commercial Repeat Sale Index (“CCRSI”) provides the market’s first look at July 2011 commercial real estate pricing. The CCRSI provides the broadest measure of commercial real estate repeat sales activity based on more than 766 repeat sale transactions in July 2011, and more than 100,000 repeat sale transactions since its inception.

This month's CoStar Commercial Repeat Sale Index ("CCRSI") provides the market's first look at June 2011 commercial real estate pricing.  The CCRSI provides the broadest measure of commercial real estate repeat sales activity based on more than 914 repeat sale transactions in June 2011, and more than 100,000 repeat sale transactions since its inception.