US Commercial Real Estate Prices Down 8.8% from Peak
US commercial real estate prices have registered their largest monthly decline since the inception of the Moody’s/REAL Index.
Moody’s said the Index stood at 174.97 in May, down 3.5% from the previous month, and 5.7% below the same period last year. This represents three consecutive months of negative returns, and the largest one-month drop since the inception of the index. Nonetheless, the CPPI still logs an increase of 3.9% over a two-year time period.
The index now stands 8.8% below the peak in October 2007.
Moody’s also noted that the average transaction price is steadily falling as transaction activity continues to shift to lower priced assets.
Details by region and type are available in Moody’s/REAL Commercial Property Price Indices, July 2008.
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July 25th, 2008 at 4:23 pm
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