CRE market witnessing slow growth

The commercial market is growing slowly.

A recent report from CoStar showed that the commercial real estate market in the United States as a whole is experiencing recovery, but the results are mixed, which may frustrate some commercial property management companies.

The firm's Commercial Repeat-Sale Indices for February showed that the U.S. Composite Index dropped 1.3 percent during the month because of a decline in investment-grade pricing. In addition, it is 33.6 percent lower than the index's peak before the recession. However, it is still 4 percent above numbers from the same period 12 months earlier.

The U.S. General Commercial Index for February did not change significantly, and the report noted that this measurement has been stronger than the Composite Index in the past year. Furthermore, the general index has increased 1.7 percent since January, while the Composite Index has not had any major movement during that time period.

The report added that the U.S. Investment Grade Index fell 6.6 percent during January and February, which is worse than the 5.6 percent decline during the same period in 2011. This is due to a decline in investment transaction volumes. Even with these negative figures, there are still positives, as the index has risen 11.5 percent since 2009.

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