U.S. commercial real estate prices, as measured by Moody's/REAL National All Property Price Index, declined 1.4% in September, according to a new report from Moody's Investors Service.
The decline follows four months of price increases, and the index remains near its two-year average price level. Moody's expects the bottoming process to continue for the next two years.
‘We expect multifamily and hotel properties to lead the price recovery,’ says Moody's Managing Director Nick Levidy. ‘Office and retail will lag mostly because of a very high number of vacancies and the burn-off of above-market rent leases.’
September repeat sales amounted to 255; the average monthly transaction count for 2011 thus far is 192, compared with 144 for 2010 and 96 for 2009. Price movements were positive according to indices for the national quarterly property types, most notably with apartments up 6.3% and retail up 10.4%.
‘Transaction volume remained robust; we saw the third-highest post-crisis level of repeat sales, 25.95 percent,’ adds Levidy. ‘The rate has been above the 20 percent mark for 20 months now.’Â