Encouraging News for Commercial Real Estate – July 2011 Closings

Posted September 15, 2011

This is encouraging. It’s the fourth consecutive monthly price increases for the General Commercial Index of 2.4% for investment quality product and .7% for general commercial. The monthly National Composite Index increased by 1%.

CCRSI Index Results

CoStar’s Composite Commercial Repeat Sales Index increased by 1% in July 2011. It is now 1.6% below the same period last year and 33.1% below its peak in August 2007.
CoStar’s Investment Grade Commercial Repeat Sales Index increased 2.4% in May 2011 and is now 6.8% above the same period last year and 32.4% below its peak in August 2007.
CoStar’s General Grade Commercial Repeat Sales Index increased by 0.7% in May 2011, and is now 3.4% below its year-ago level and off 33.5% from its August 2007 peak.

Sales volume decreased slightly in July with 766 sales versus an average of 834 over the last six months. A similar slowdown was observed in both investment quality and general commercial. The low point in the previous downturn was 375 sales in January 2009.

This performance is better than I thought it would be. However, this was early in the current mini-downturn. Most of these deals were late in the process with deposits that had gone hard for them not to close. We’ll see how the August numbers turn out and I would be willing to bet that we’ll see some softer numbers.

CoStar News – July Commercial Closings

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.