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Friday, 29 September 2017

Real Capital Analytics Alters Methodology for Commercial Property Price Indices

Real Capital Analytics has changed the way it calculates its widely used repeat-sales commercial property price indices, providing users more granularity into price movements of individual property sectors. While the modifications won't result in visible changes, they're designed to make the index more stable.

Commercial Real Estate Direct Staff Report

Real Capital Analytics has changed the way it calculates its widely used repeat-sales commercial property price indices, providing users more granularity into price movements of individual property sectors.

The change in methodology marks the third time the index, commonly referred to as the CPPI, has been refined since it was launched in 2006.

But the latest modifications won't have a major impact on how pricing changes are gauged. Instead, they were designed to provide more granular data for its users who now will be able to track pricing changes for office properties in New York, for instance. They're also designed to minimize the revisions the New York research company has to make when it learns of new information on deals.

Real Capital produces more than 350 indices in 15 countries, including 50 national indices and 190 U.S. market-specific indices that examine the different property sectors. The company gathers data on commercial properties that have sold at least twice and are valued at $2.5 million or more each. It has data on more than $18 trillion of property deals.

For the new methodology, Real Capital worked with David Geltner, associate director of research at the MIT Center for Real Estate, MIT research scientist Alex van de Minne and University of Amsterdam professor Marc Francke.

Geltner explained that constructing a commercial property price index is complicated by the lack of homogeneity - properties that trade in one period are different than those that trade in others. In...





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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 - 2016
Investment Bank #Deals Vol$mln MktShr%
JPMorgan Securities 14.94 10,350.16 15.14
Deutsche Bank 14.21 9,926.60 14.52
Wells Fargo Securities 13.36 9,513.96 13.92
Citigroup 10.87 8,061.79 11.80
Goldman Sachs 10.05 7,563.72 11.07

 

RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2016
Lender #Loans Vol$mln MktShr%
JPMorgan Chase Bank 133.67 8,670.33 13.34
Goldman Sachs 156.20 7,418.37 11.41
Deutsche Bank 178.17 6,510.75 10.02
Citigroup 184.41 5,512.20 8.48
Morgan Stanley 113.18 4,130.53 6.35

 

 

 

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