Moodyb s/REAL Commercial Property Price Index showed a 0.6 percent increase in commercial property prices in November compared to October, according to Bussinessweek. This is up nearly 3 percent from the previous year and a 6.4 percent increase since Augustb s extreme low. Overall, the U.S. gained around 1.1 million jobs last year, helping the nationb s commercial real estate office market. From Businessweek:
“‘The choppiness seen in the index returns over the past 12 months reflects the overall uncertainty in the breadth and staying power of the macroeconomic recovery in the United States and Europe,'” Moodyb s said. “‘The overhang of distressed properties, the sale of which has comprised about one quarter of the transactions used to calculate the index for most of 2010, has also served to apply downward pressure on the index.'”
CoStar Group, which looks at transactions less than $2.5 million, revealed a completely different number, showing prices dropped 4.1 percent in November, according to the article. And Green Street Advisors, which, unlike Moody’s, also looks at uncompleted transactions being negotiated or under contract, showed a 1 percent increase in property values in December.
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