Year-End Reporting Confirms Resurgent US Property Market
Thursday, January 27, 2011
Source: Globe St
Globe St reports: In his column on GlobeSt.com, Paul Bubny recently summarized the numerous positive trends in commercial real estate currently being tracked by Real Capital Analytics (RCA). In recent weeks, RCA has released its latest Moody’s/REAL Commercial Property Pricing Index (CPPI) for the November 2010 period, as well its US and Global Capital Trends 2010 Year in Review reports. Positive indicators for US commercial property markets are embedded in each of these releases.
Mr Bubny reiterated that, according to November’s CPPI, pricing for commercial property in the US increased by 0.6% - the third consecutive monthly increase in that index. There are some reservations, however. The recent rises in the series is in contrast with the sharp drops over the summer months, which led Moody’s managing director Nick Levidy to remark of the index that, “We expect the choppiness of the CPPI to continue in the months ahead…A fragile recovery, uncertainty about the forward-looking interest rate environment and pressure from developments in the European sovereign bond market all conspired to depress index returns.”
Even more positive are the trends displayed in RCA’s US Capital Trends, which revealed that, “the fourth quarter of ’10 represented the strongest three-month period for US commercial property sales since ’07, with $55.3 billion worth of transactions.” Whether this momentum will continue into 2011 is dependent on growth in the US’ broader economy and availability of credit, among other conditions unforeseen.
View the full article on Globe St: Year-End Reporting Confirms Resurgent US Property Market
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