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Thursday, 22 March 2018

Commercial Property Prices Increase by 0.5 Percent in February

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Commercial Real Estate Direct Staff Report

Commercial properties continue to post price increases. They've increased every month since bottoming out in May 2010, according to the Real Capital Analytics Commercial Property Price Index.

In February, they increased by 0.5 percent, putting them 21.4 percent greater than they were during the pre-recession peak, hit in July 2007, and 88 percent greater than their trough, reached in May 2010.

Leading the charge, of course, have been apartment properties, whose prices increased in February by 0.73 percent and are now a whopping 131.7 percent greater than they were during their lows, in early 2010.

No other property type has performed, in terms of price hikes, as well as the apartment sector. The closest is downtown, or central business district, offices. While their prices actually dropped in February, by 0.77 percent, they're still 98.4 percent higher than they were during the market's bottom and 30.2 percent higher than they were during the previous market peak in late 2007.

During the latest month, properties in non-major markets outperformed those in major markets. Their prices increased by 0.65 percent compared to the 0.03 percent increase for major-market properties.

But major-market property prices are up nearly 97 percent since the market's trough and 38 percent from the previous market peak. Those numbers compare to the 85.4 percent and 13.5 percent respective increases for non-major market properties.

Retail properties continue to underperform. While prices increased by 0.37 percent in February, they're still down 2.6 percent from the previous peak. Retail is the only property sector with prices that are below the previous peaks. They're up 54.9 percent since the market's bottom, making them the laggards in that category.

Comments? E-mail Orest Mandzy, or call him at (267) 327-4281.



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“The Weekly” is Commercial Real Estate Direct’s PDF newsletter, sent to subscribers every Friday morning. With over 100 news stories published on Commercial Real Estate Direct each week, “The Weekly” features the top stories in commercial real estate that industry participants need to know first. “The Weekly” also contains:

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Additional Info

  • Syndicate to Realpoint: No
  • Subject: Property Acquisitions (ACQ), Research (RES)
  • Company: Real Capital Analytics
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Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44

 

RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41

 

 

 

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