TrafficCourt

CRE Prices Ticked Higher in April

RSS

The latest numbers from the Moodys/REAL Commercial Property Price Index (CPPI) show that prices continue to move sideways and that a bottom in pricing seems to have formed.

The CPPI shows a return of positive 1.7 percent in April for the all properties national database. The rise comes after a fall in the index in February and March. Ultimately, observers are projecting that prices may bounce along this level for some time. We shouldn't expect to see any more sharp downturns in the index, but a recovery in prices is not in the cards yet either. Overall, values are down 16 percent over the last year and 41 percent from the peak in late 2007.

Calculated Risk provides a nice analysis of these numbers every month that compare the commercial index with the Case-Shiller composite 20 index of housing prices. Needless to say, the similarity is striking.

Click or larger image.

moodys april 2010

The quarterly index by property type has also been updated recently. On retail assets, the index dropped to 133 in the first quarter--down from its peak of 195 in the third quarter of 2007. Overall, the national retail index has dropped 32 percent from its peak.

Click for larger image.

retail index q1 2010

Please or Register to post comments.

What's TrafficCourt?

Industry news, views and occasional strange stuff.

Contributors

Elaine Misonzhnik

Senior associate editor Elaine Misonzhnik has been writing for National Real Estate Investor since June 2006 and has covered commercial real estate for more than 12 years. She first became...
Blog Archive
National Real Estate Investor Related Sites

Sponsored Introduction Continue on to (or wait seconds) ×