Commercial pricing experiences gains

Commercial property had a pricing increase in September.

The national commercial real estate pricing situation has recovered well since the recession, as property management companies experienced a rise to a level not seen since the market peak in 2007, according to a blog post from chief economist for the National Association of Realtors Lawrence Yun.

In September, commercial real estate prices rose 6.2 percent compared to the same month in 2011. This improvement was led by the multifamily market, which had a 6.7 percent price gain from the same month last year. In 2007, the figure was 7 percent below the current level, Yun wrote in a blog post for Indoor malls experienced a year-over-year gain of 13 percent, which was also 7 percent higher than the 2007 peak.

Yun noted that low interest rates helped the continued price gains in the market, as investors have been motivated to make purchases instead of waiting for recovery. Many property investors have taken advantage of buildings that have an elevated yield compared to the interest rate acquired. Additionally, increased job growth helped improve overall demand for units in recent months.

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