Wall Street Journal reports: A recent posting on the Wall Street Journal’s site sought to explain the growing rift between repeat-sale pricing for CBD and suburban offices that was recently revealed in the June analysis by Geltner & Associates of the Moody’s/REAL Commercial Property Price Index (CPPI), which is based on sales data collected by Real Capital Analytics. Among the reasons CBD pricing is rebounding from the downturn so rapidly include investor demand for “safe-bet” CBD assets and urban renewal – driven by new downtown amenities and cheaper rents than during the boom year – which is growing lease rolls in downtown areas. The Journal also stated that the decline in suburban prices could be blamed on the lack of economic activity in most US suburbs, with many areas carrying the stigma that comes from being filled with vacant recently-built houses. The increasing disparity between CBD and suburban pricing could also be a product of the index itself. The custom analysis that delves into the CBD vs suburban topic includes distressed sales (disproportionately occurring in suburban areas) and the phenomenon of investors heavily targeting the nation’s most visible, expensive markets such as New York and Washington, DC.
Real Capital Analytics, Inc.+1 212-387-7103Trouble Logging In?
5/11/2012 BusinessWeek:Twitter Pushes Office Rents Up
5/8/2012 ICSC:ICSC Awards Real Capital Analytics its Distinguished Research Partner Award for 2012
5/2/2012 Bloomberg:European Property Sales Down
4/27/2012 Bloomberg:Manhattan Apartment Prices Reach Peak Level