Sales prices improve in CRE market

Sales prices recently improved around the country.

A report from CoStar showed that commercial property managers experienced a rise in transaction price levels during May.

The firm's Commercial Repeat Sale Indices report for July revealed that the Value-Weighted Composite Index and Equal-Weighted Composite Index grew in May compared to the same month in 2011. The value-weighted reading rose to its highest point since 2009, while the equal-weighted index rose 6.6 percent year-over-year. That was the most sizable gain since 2007.

Much of the price gains for the commercial sector are due to property demand being quite high over the past couple of years, the report explained. The past 12 months have had the most demand in investment-grade properties, as well.

The report also noted that despite the impressive gains as of late, the equal-weighted index only rose 8.8 percent since March of last year. This is much less than the value-weighted index, which jumped more than 36 percent. However, that index bottomed in 2010.

San Francisco and Austin were two markets with the strongest leasing activity in the nation, the report added. 

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