CRE Prices Are Now Officially Above Pre-Recession Peak
2015-10-10In the wake of the Great Recession and the financial crisis, the all-property CPPI fell by approximately 40 percent between November 2007 and January 2010. By comparison, the Consumer Price Index fell only 3.5 percent between July 2008 and January 2009 and then continued to rise, the researchers note.
Sector by sector
Month-over-month, the all-property index has increased 1.6 percent, with the strongest price growth posted by industrial properties and office properties in Central Business Districts (CBDs), both at 2.6 percent.
Prices on retail properties rose the least in August, by 0.2 percent, according to the index.
Prices on apartment buildings rose 1.3 percent during the month, while prices on all office properties increased 2.2 percent.
Moody’s/RCA researchers note that at this point, the only property sectors where prices have not exceeded their pre-recession peak are retail (still down 7 percent) and suburban office (down 9 percent).
The Moody’s/RCA CPPI is calculated based on repeat sales transactions that occur two months prior to the publication of the report.
Source: http://nreionline.com/finance-investment/cre-prices-are-now-officially-above-pre-recession-peak
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