Commercial Real Estate Price Bounces Back in July 2012

Posted September 13, 2012

Commercial real estate prices posted major gains in July across all segments to further support the widely held view that we are at the beginning of a broad based recovery.

The two broadest measures of property pricing in this month’s CoStar’s Commercial Repeat Sales Indices (CCRSI) shows big gains for both high end investment grade properties and also general commercial, which are smaller, less expensive commercial properties in secondary and tertiary markets.

July reverses the softness we saw in June due to diminished investor confidence and a slowing global economy.

CoStar’s Value Weighted Composite Index for July showed that commercial real estate prices surged by a robust 11.3% for the month, This is up 33% from the cycle low January 2012, but is still 18.4 below the previous cycle peak of 18.4% in September 2007.

The CoStar General Commercial Index is up 6.3% from the cycle low in March 2011. Sales pricing in the broader general commercial market has made substantial gains in the last few months. It took about 18 months longer for general commercial real estate market segment to get moving again than the higher end investment grade segment, but July’s number substantiate the fact that it has.

Commercial Real Estate

Commercial realtor

Commercial real estate with a focus on out-of-state investment property for my Southern California investors. My clients are Southern California local buyers looking for a return far better than what is available around here and that generally means out-of-state. We have expert property management, legal, and contracting services available.