Prices rise for suburban office properties
Sales prices for suburban office properties are growing faster than prices for CBD office assets, according to the most recent Moody’s/RCA Commercial Property Price Indices, which are based on a repeat-sales methodology. CBD office prices fell 1.9 percent in January, while suburban office prices rose 1.2 percent. Suburban office prices have outpaced CBD office over the past one-, three- and 12-month intervals, according to the CPPI.
“Investors continue to have a strong appetite for office assets. Some investors are also becoming less risk-averse as they chase higher yields, with a particular focus on suburban assets,” notes Colliers International in its fourth quarter 2016 Office Market Outlook.
Overall, the national CPPI rose 0.1 percent in January. Apartment property prices rose 0.9 percent in January, and industrial prices increased 0.2 percent, while retail prices dropped 0.1 percent. Non-major markets outpaced major markets, with returns of 0.6 perc