Two new reports on the state of commercial real estate (CRE) have produced mixed results.
Moody's Investors Service stated that the overall composite score for CRE in the fourth quarter of 2010 rose to 65, up one point from the previous quarter. Moody's rates its scores on a scale of one to 100, and the current score is two points shy of the highest-scoring section of the scale.
Moody's added that the CRE sectors either rose slightly or remained the same on its scale, with the multifamily composite sector at the highest level with an overall composite score of 88.
Separately, the aggregate value of CRE loans priced by DebtX that collateralize commercial mortgage-backed securities (CMBS) decreased to 79.8% as of March 31, from 79.9% as of Feb. 28.
Loan values were 75.9% as of March 31. In March, DebtX priced 54,765 CRE loans with a $653.7 billion aggregate principal balance.
‘Commercial real estate loan prices in March were largely unchanged from February and remained at approximately the same level throughout the first quarter of 2011,’ says DebtX CEO Kingsley Greenland. ‘The stabilizing prices suggest continuing modest improvement in the underlying fundamentals of the commercial real estate market.’
