Second Monthly Rise in Commercial Property Pricing Index (CPPI)
Bloomberg reports: The October Moody’s/REAL Commercial Property Price Index (CPPI) was released on December 20, 2010. According to the report, US commercial property pricing jumped by 1.3 percent between September and October. This came after the 4.3 percent spike in the previous month’s index, which was the largest monthly rise in the series’ history. The October increase reflected growing demand for the best office buildings in the nation’s major markets, including New York, Washington, DC, and San Francisco.
The CPPI’s October rise was tempered by the market’s large volume of distressed assets, which typically trade at much lower pricing levels than core/stabilized properties and assets in major markets. As investors are boxed out of those types of opportunities from growing competition, the report suggested that might turn to alternative investment properties, such as those in distress or those in less visible markets.
Though it was the second consecutive monthly rise, the CPPI remains 42 percent below the cyclical peak registered in October 2007.
View the full article on Bloomberg: Second Monthly Rise in Commercial Property Pricing Index (CPPI)
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Posted by: Nina Turner