Publications

- July 1, 2015: Vol. 27, Number 7

To read this full article you need to be subscribed to Institutional Real Estate Americas

Property prices go peak to trough to peak again

by Loretta Clodfelter

Commercial real estate prices have bounced back following the global financial crisis. According to the Moody’s/RCA Commercial Property Price Indices National All-Property Composite Index, real estate prices are now 10 percent higher than the pre-crisis peak in November 2007. The rise is fueled by transactions in major markets, where prices exceed their pre-crisis peak by 25 percent. Secondary market prices are still 4 percent below their pre-crisis peak.

In the past 12 months, the All-Property Composite Index has recorded a 16.3 percent gain in property prices, with a 1.6 percent rise in April. While apartment prices have been on a tear since the financial crisis, up 27.6 percent from their pre-crisis peak, the pace seems to be slowing. The apartment component increased 0.5 percent in April, while core commercial property prices increased 2.0 percent.

 

Forgot your username or password?