February 2012 Commercial Repeat Sales Analysis Now Available - CoStar Group

Latest Findings from CoStar's New Economic Indices Offer Insight and Analysis of Commercial Real Estate Sales Activity

By CoStar Staff
February 20, 2012

CoStar Group released the latest findings of theCoStar Commercial Repeat-Sale Indices (CCRSI) last week, providing the market's first look atcommercial real estate pricing trends based on property sales that closed through December 2011, and offering the broadest measure of commercial real estate repeat sales activity.

The National Composite Index of commercial real estate prices ended the fourth quarter of 2011 relatively flat with December 2011 commercial real estate pricing essentially unchanged from October 2011 levels. This trend was in-line with fourth quarter pricing performance in each of the past two years, as heavy pre-year-end trading activities kept prices stable. The National Composite index ended 2011 up just 0.2% from year-ago levels, however the index was up 5.5% from its low point in March 2011, thanks to a mid-year surge.

The Multifamily index continued to demonstrate the strongest pricing growth, advancing by 6.8% in the fourth quarter of 2011 and increasing a total of 15.3% in 2011. The Retail index lost ground in the fourth quarter of 2011 and returned to its lowest value since 2003.

Among CCRSI's regional indices, the West regional index recorded the largest regional gains, aided by outsized growth in office and multifamily pricing levels, while the Northeast regional index continued to track the largest cumulative pricing gains since the trough of the recent cycle. While distressed trading volume remained elevated in the fourth quarter, its impact on pricing levels was mitigated by a surge in non-distressed property trading.

View the press release for a full analysis.

CoStar developed the CoStar Commercial Repeat-Sale Indices to provide a comprehensive set of benchmarks that investors and other market participants can use to better understand and predict price movements within the commercial real estate sales market.

We believe an accurate measure of real estate price changes is a critical component to understanding investment or market performance. By covering all levels and all types of CRE transactions, and by using well-tested available methodologies, we believe that CoStar’s CCRSI indices will provide one of the most comprehensive benchmarks for tracking and analyzing price movements within commercial real estate.

CoStar plans to release updates for the CCRSI every month to serve as timely indicators of the overall health of the commercial real estate industry.

To access the CoStar Commercial Repeat-Sale Indices, please go tohttp://www.costar.com/ccrsi/index.aspx.

February 2012 Commercial Repeat Sales Analysis Now Available - CoStar Group


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