Moody’s/RCA CPPI increases 1.5 percent in July
Commercial property prices continue to recapture the value they lost post–global financial crisis. The Moody’s/RCA Commercial Property Price Indices (CPPI) national all-property composite index increased by 1.5 percent in July and is up 11.1 percent over the past 12 months. Prices have climbed 42.1 percent since the December 2009 trough, and the index now stands 14.9 percent below its December 2007 peak.
The July growth was driven by a 2.0 percent increase in core commercial prices. Apartment prices only increased 0.4 percent in the month of July, though they have exceeded the growth of core commercial prices over the past 12 months, 14.1 percent to 10.0 percent, respectively. Additionally, June and July were among the rare months in recent years in which core commercial prices outpaced those of apartment prices. Since the December 2009 trough, apartments have experienced just short of double the pace of appreciation for commercial properties, 63.0 percent