Moody’s States that Commercial Real Estate Prices Rose in February

Tuesday, April 22 2008 @ 07:45 AM Central Daylight Time BusinessAs measured by Moody’s/REAL Commercial Property Price Indices or CPPI, commercial real estate prices in the United States have increased about 2.1 in February alone. That means it offsets most of the recorded losses the CPPI’s have posted since about October, based on reports.

Moody’s said that they interpret what CCPI’s report about the increase that is set in February; they treat it as a continuation of the process of the price discovery. That may most likely to continue over a protracted period most possibly in a few more quarters they estimate.

Moody’s also said that for the time being, a large gap persists between what buyers are willing to pay and what sellers are willing to accept. It is known that volumes may be down just because the prices that they are anticipating have not yet adjusted to what they expect it to be as “Market Conditions”. The two-year change in prices was 12.9 percent for February; it states that CPPI in February’s increase places the year-over-year 4.2 increase in prices for the month.

Despite the reports Moody’s continues to expect a price fall about 15 percent to about 20 percent before bottoming out for commercial property. They say that there are several known forces that are saying that they are working together to slow down the recognition of the decline.

Jron Magcale


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