US Commercial Real Estate Prices Down 11.8% from Peak
US commercial real estate prices as measured by Moody’s/REAL Commercial Property Price Indices (CPPI) fell for the fourth straight month in June.The CPPI is down 3.3% from May, 9.6% below what it was a year earlier and 0.6% below its level two years ago.
The CPPI now stands 11.8% below its peak in October 2007.
Moody’s also reports that during the second quarter of 2008, all four property types measured in the index posted negative returns. The national industrial market saw the largest drop in prices, with a return of -9.3% during the quarter. The national apartment market returned -7.1%, while offices saw returns of -5.9% and retail of -4.6%
While the volume of transactions dropped significantly throughout the first half of 2008, declining more than 25% over the first half of 2007, Moody’s notes that there was a slight increase in both number and dollar value in June over the previous month.
Details by region and type are available in Moody’s/REAL Commercial Property Price Indices, August 2008.
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