Publications

To read this full article you need to be subscribed to Newsline.

Sign in Start Your Free Trial Now View Purchase Options

CBD office breaks price slide

by Reg Clodfelter

The CBD office sector ended a five-month price slide in May with an increase of approximately 2 percent, according to the latest Moody’s/RCA Commercial Property Price Indices.

Still, the sector remains down 2 percent over the last 12 months — during which all other CPPI components increased at least 4 percent — on the heels of record sales prices in early 2015. During that same 12-month period, apartment prices grew by nearly 12 percentage points, while core prices across property sectors grew only 5 percent.

Core yields have not inspired confidence either in 2016. The NFI-ODCE index returned an estimated 2.13 percent during the second quarter, after only returning 2.18 percent the quarter before, putting 2016’s pace well below the index’s one-year return of 11.82 percent.

The slowing of the core sector — especially CBD office — in both income and appreciation, is a big reason why commercial real estate invest

Glossary, videos, podcasts, research in the Resource Center

Forgot your username or password?