RCA Insights

Chart: US Price Recovery by Market Post GFC

By on May 11th, 2020

Covid-19 has created a great deal of concern in the commercial real estate sector. While we do not know how long the crisis will last or how badly prices will be affected, we can look back on how markets fared across the U.S. during the last recession. The charts below show how many months it took for each market to get from its lowest price point during the Global Financial Crisis back up to its pre-GFC peak.

For the commercial indices, California markets made up three of the top five fastest recoveries. Apart from Dade County, Florida markets tended to recover slower than most. Both Broward County and Tampa appear at the bottom of the ranking and the Palm Beach County index never returned to its pre-GFC level.

West Coast markets also recovered the fastest in the apartment sector, with Portland bouncing back the quickest. Like the commercial indices, apartment prices were slower to rebound in Florida. Tampa had the most gradual recovery, taking more than 90 months to get back to its prior peak.

This chart first appeared in the April 2020 RCA CPPI US summary report. To learn more about the RCA CPPI (Commercial Property Price Indices) and to sign up for reports visit rcanalytics.com. If you are an RCA client you can access RCA CPPI data and conduct your own pricing analysis on the RCA website.

Real Capital Analytics will publish the RCA CPPI Global Cities report on May 14. This report examines price trends of major markets across North America, Europe and Asia Pacific for Q1 2020.

Also on RCA Insights:

RCA: This Is What a Distress Cycle Looks Like

Valuing US Apartments in the Midst of COVID-19

Wyatt Avery

Wyatt Avery joined Real Capital Analytics in 2016. He is a senior analyst in New York, specializing in cross-border capital flows and the RCA CPPI. He is a leader on several US-focused publications.