CRE Prices Ticked Higher in April

The latest numbers from the Moodys/REAL Commercial Property Price Index (CPPI) show that prices continue to move sideways and that a bottom in pricing seems to have formed.

The CPPI shows a return of positive 1.7 percent in April for the all properties national database. The rise comes after a fall in the index in February and March. Ultimately, observers are projecting that prices may bounce along this level for some time. We shouldn't expect to see any more sharp downturns in the index, but a recovery in prices is not in the cards yet either. Overall, values are down 16 percent over the last year and 41 percent from the peak in late 2007.

Calculated Risk provides a nice analysis of these numbers every month that compare the commercial index with the Case-Shiller composite 20 index of housing prices. Needless to say, the similarity is striking.

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moodys april 2010

The quarterly index by property type has also been updated recently. On retail assets, the index dropped to 133 in the first quarter--down from its peak of 195 in the third quarter of 2007. Overall, the national retail index has dropped 32 percent from its peak.

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retail index q1 2010

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