Commercial Property Sales in the Top Ten Largest Markets is Recovering Much Stronger than the General Market

by CoyDavidson on February 9, 2011

CoStar Commercial Repeat-Sale Indices | February 2011

CoStar Group released the February 2011 CoStar Commercial Repeat-Sale Indices, with data through December 2010. The CoStar Commercial Repeat-Sale Indices (CCRSI) measures of commercial real estate prices in the United States.

At the national level, CoStar’s Investment Grade Repeat-Sale Index was up nearly 7% for the month of December continuing the see-saw pattern observed with oscillating monthly pricing data, resulting in a slight positive quarter. While still below of the pricing index from two years ago by 20%, the investment grade property index finished 2010 with a strong positive 8% climb for the year. From its peak in July 2007, the Investment Grade pricing index is down 34.1%, with the trough occurring in January 2010 when the Index was down 40%.

Commercial real estate in the Northeast region of the United States leads the nation in terms of strengthening pricing having recovered 23% of its pre-recession pricing levels. The Southeast region of the country is the only other region that has recovered a portion of it pre-recession pricing levels gaining back 14%.

I should note that currently there is not a high volume commercial real estate transactions compared to pre-recession levels and with a notable percentage of distressed sales price indices are volatile.

Houston ranked number 10 in the office sector and number 7 in the industrial sector.

Source: CoStar Group

Read the full CoStar release: here

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