The Moody's/REAL All Property Type Aggregate Index measured a 4.1% increase in commercial real estate prices in December 2009. This marks two consecutive months of price gains, and is the largest monthly increase in the history of the Commercial Property Price Indices (CPPI). Prices are down 29.2% over a year ago, 39.8% over two years ago, and 40.8% from the peak.
As is typically the case for the last month of the year, transaction volume saw a significant increase in December. There were 716 transactions totaling $9.0 billion (approx. 6.6 bln.) recorded.
Although three of the four national property type indices recorded value gains in the fourth quarter of 2009, each declined within a range of 19.0%-23.2% for the full year of 2009.
Prices in the top ten cities for the fourth quarter of 2009 saw minor declines for apartments and industrial, a minor gain in retail, and a significant increase for office. Overall however, prices in all four property types have fallen 21.4%-36.0% from the peak.
Source: Walek & Associates