The latest report from Moody's Investors Services has been released showing that commercial prices in the U.S. dropped 3.3% from July to August of this year, a continued decline in the market that's seen prices down some 45.31% since the peak set in October 2007. Moody's commercial real estate prices are now 19% lower than the consumer price index but analysts expect the index to "revert to a long term trend line close to that of the CPI".
"The commercial real estate market in the US has become trifurcated with prices rising for performing trophy assets located in major markets, falling sharply for distressed assets, and remaining essentially flat for smaller healthy properties," said Nick Levidy, Moody's managing director in a Property Wire article. The Moody's/REAL CPPI report is produced by the MIT/CRE and is a complimentary report to their alternative transaction based index (TBI) as it is published monthly and is formulated from a completely different dataset supplied by Real Capital Analytics, Inc. and Real Estate Analytics LLC.
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