Commercial Real Estate – Year Over Year Price Increase

Posted December 15, 2011

In California, Columbus, Commercial, Ohio, Retail, Santa Monica

For the first time since 2008, overall commercial real estate prices are on the increase. CoStar’s monthly National Composite Index of Commercial Real Estate increased 2.2% and that’s the first since the sharp downturn in 2008.

Leading the price recovery has been investment grade property – no surprise there as I’ve written about this for months. Also, the continued decline in distressed volume contributed to the 1.8% gain from the previous month.

The General Commercial Index rose 1.4% in October. That’s the sixth consecutive monthly increase, reversing a 32 month decline.

The investments grade index achieved a 3.4% increase in October versus the previous month. Growth has been strong since March 2011. Distress decreased from 53% to 28% in the same time frame.

Sales volume is still 31.1% below the August 2007 peak and the biggest reason is that we have so little inventory. So again, developers, if you have new triple net or absolute net single tenant retail coming out of the ground, I’d be real interested. In spite of being substantially below the all time peak, transaction volume is average for the period.

What we’re seeing is a broad based recovery. Barring something cataclysmic happening international, we’re on our way to good six or seven years before the next downturn. Absolutely, it will happen again.

CoStar News – Article – Commercial Real Estate Price Index Sees First Year Over Year Gain Since 2008

Commercial Real Estate, Net Lease, Triple Net Retail

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.