Moody’s: Commercial Real estate Prices up in April
New York – 22 June 2010
Commercial real estate prices rose in April, the first monthly increase since January, according to a report issued Monday by Moody’s Investors Services.
The 1.7 percent increase means a price recovery of 4.7 percent from their low in October 2009, Moody’s said.
Nationwide, commercial real estate prices remain about 41 percent below their peak in October 2007.
“Prices have remained choppy since October,” said Nick Levidy, Moody’s managing director.
Analysts are hesitant to say if the worst is over.
Commercial real estate sales remain extremely low, which makes it difficult to determine whether prices have hit bottom, Levidy added.
The number and volume of transactions fell in April, with 114 repeat sales and a total balance of just under $800 million, as compared to 127 repeat sales in March, Moody’s said.
Moody’s measures commercial real estate prices in office, retail, apartment and industrial segments.
The firm measures commercial property prices based on the repeat sales of the same properties across the U.S. at different points in time.