February 8, 2010
According to the Green Street Advisors Commercial Property Price Index (original name), prices are up 1% in January, and now up 10% off the bottom reached in May of 2009. The GSA’s index is based on prices for transactions which have not yet closed yet, as opposed to Moody’s which reflects closed transactions.
This is also in contrast to the MIT TBI index, which for the 4th quarter showed “a 4.9% decrease in prices compared to the previous quarter for properties sold from the NCREIF database, placing the price index 39.5% below its 2007 Q2 peak, slightly below where it was two quarters ago.”
We prefer the MIT/TBI index (transaction-based index) over the Moody’s and now Green Street CPPI, but what this report tells us is that we’re stabilizing. Whether we’ve reached a bottom or not depends on a lot more than a fancy chart, so a lot remains to be seen over the next few months with the market, sovereign debt, and retail and employment numbers.
GSA report below…
- Decline Continues in Moody’s/REAL Commercial Real Estate Index: April Down 8.6%
- Moody’s Commercial Property Price Index Falls Again
- Moody’s Commercial Property Price Index August Update
- MIT TBI Shows 4.4% Quarterly Jump
- Moodys’ Commercial Property Price Index Increases 4.1% In December