Commercial recovery slows, multifamily sector still strong

The multifamily market is doing well despite slowed recovery.

Moody's Investors Service recently released findings that showed the commercial real estate market's growth has slowed, but the commercial sector is improving.

Overall, Moody's Commercial Property Price Indices did not change in March when compared to February. However, it was 12 percent higher than the same point in 2011. The lack of growth may be due, in part, to only a 1.8 percent price advance.

"The increased cost and decreased availability of capital markets debt in the wake of ongoing euro-area sovereign stress has filtered its way into the prices of recently closed transactions," said Tad Philipp, director of CRE research for Moody's.

However, the multifamily market is expanding, and this may be positive news for property management companies. The report explained that building prices for multifamily properties increased 18 percent from March 2011 to March of this year. In addition, apartment properties in major markets around the nation have experienced a recovery of approximately 87 percent compared to the bottom in late 2009.

Continued improvements from the multifamily market may be spurred on by improvements in the job market, as well as more young Americans living on their own.

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