CCRSI Shows CRE Price Index Up, Seventh Month in a Row

CoStar released the CoStar Commercial Repeat Sale Index (CCRSI) reflecting that the CoStar National Composite Index of commercial real estate pricing rose for the seventh straight month. In November, the Index increased by 0.6%, with prices for commercial property an average 1.8% higher than compared with the same period a year ago.

Monthly CCRSI Results

CoStar's Composite Commercial Repeat Sales Index increased by 0.6% in November 2011. It is now 1.8% above the same period last year and 31.8% below its peak in August 2007.

CoStar's Investment Grade Repeat Sales Index increased by 2.2% in November 2011 and is now 6.4% above the same period last year and 29.2% below its peak in August 2007.

CoStar's General Grade Commercial Repeat Sales Index increased by 0.3% in November 2011 and is now 1.1% above the same period last year and 32.5% below its peak in August 2007.

"This modest-but-steady recovery largely reflected the impact of improving market fundamentals, which have continued to attract investors and buyers despite a lending environment for smaller properties that has remained constricted," according to the CoStar report.

The CoStar indices are constructed using a repeat sales methodology that measures the movement in the prices of commercial properties by collecting data on actual transaction prices. The CCRSI tracks sale pair transaction data through Nov. 30.

For more news and information visit Blumberg Capital Partners.

CRE Price Index Shows First Year-Over-Year Improvement in Years

CoStar has released its latest monthly National Composite Index of commercial real estate prices showing a 1.8% gain in October from September, and a 2.2% increase from the same period last year, marking the first year-over-year improvement since the economy and markets took a downturn in 2008. The year-over-year and monthly increases in October reflected long-awaited positive momentum in the composite index notes CoStar, which has now achieved a steady 1.3% average monthly growth rate over the six-month period between May and October 2011,

Other highlights from the CCRSI report include:

October's total of 743 sales pairs is on par with historical averages for transaction activity, according to the CCRSI December 2011 report. At the low point in the last downturn in January 2009, a total of 385 sale transactions were recorded.

As the average transaction size increases, overall transaction volume continues to trend upward, increasing by 29.4% annually in October, while the average deal size increased by 23%.

Stable fundamentals across most commercial property markets and product types, including improving occupancy, and softening downward pressure from distress sales, supported the solid performance of both the investment grade and general indices.

For more news and information visit Blumberg Capital Partners.