Nationwide Prices Increase Despite Downturn
Jun 17, 2008 - CRE News
Despite ongoing softness in the Northeast, commercial property prices nationwide rose slightly in March as measured by the S&P/GRA Commercial Real Estate indices.
The all-property composite of the indices, which weighs property values based on completed sales, rose 10 basis points in March versus a 1% drop in February. The composite is up 5.1% from March 2007.
The Northeast has been the worst-performing market with a 1.4% drop in March, which followed a 2.4% decline in February. The Pacific West rose 1.7% in March after a 90 bp drop in February. The Mid-Atlantic South posted a 10 bp drop in March while the Midwest and Desert Mountain West registered gains of 70 bp and 1%respectively.
Warehouse led all property sectors with a 90 bp gain in March, followed by gains of 30 bp for retail, 10 bp for office, and no change for multifamily prices. In February, prices dropped 70 bp for warehouse, 1.9% for offices and 1.3% for multifamily, while they increased 80 bp for retail.
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