Tracking real estate
A common question received by commercial real estate professionals is, “How is the market doing?” This is a tricky question because the commercial real estate market is so diverse. Are you talking about a large Manhattan office building or a small apartment complex in El Paso? Answering the question on market performance is similar to asking a bunch of blindfolded people to touch an elephant and then describe what they are touching; it depends on where you stand and what you touch.
During the past several quarters, NCREIF has tracked the price change of the NCREIF Property Index and the four main property types to see if they have regained their previous peak. According to the price change index, the NPI remains about 4 percent below its previous peak from the first quarter 2008. Both apartment and retail have regained their previous highs, but office, industrial and hotel remain below their