US commercial property prices down four per cent
The Moody’s/Real All Property Type Aggregate Index measured a 4.0 per cent price decline in June as commercial property markets remain choppy in the face of a sputtering economic recovery.
This is the first monthly decline since March and the third monthly price decline in 2010.
The index currently stands at 112.51, which is a slight decrease since the beginning of the year. In the first half of 2010 the CPPI is down 0.9 per cent.
Commercial property prices are 41.4 per cent below the peak that was recorded in October 2007, but still 4.2 per cent above the recession low from October 2009.
The national property type indices returned mixed results in the second quarter, with two property types (apartments and office) increasing in price and two (industrial and retail) declining.
Prices for office buildings had the largest quarterly decline of any of the property types in the Top Ten MSAs indices, decreasing 5.3 per cent. Top Ten apartments and retail, on the other hand, experienced positive quarterly gains of 6.0 per cent and 2.0 per cent, respectively.
In the West, industrial and office properties experienced strong positive quarterly returns with price gains of 12.9 per cent and 9.5 per cent, respectively. Additionally, three of the four Western property types outperformed their corresponding national property type index.
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