Commercial real estate property prices improve in November

Commercial property pricing improved in November.

There was a price increase for commercial real estate properties during November, which property management companies may have witnessed increased transaction levels during the month.

The overall price gains were not overwhelming, but showed some positive signs during the month. CoStar Group’s Commercial Repeat Sale Indices Report showed the value-weighted U.S. Composite Index rose 0.9 percent from the previous month. It also was nearly 40 percent higher than the cyclical bottom, recorded in 2010.

The equal-weighted index improved 1.1 percent, the report explained. This was also 10 percent from the cyclical bottom, recorded in the early part of 2011.

Distressed sales for commercial properties experienced a decline in November, as the total share fell to less than 15 percent, according to the report. The last time the figure was this low was during the summer of 2009. Additionally, absorption improved during the final three months of the year for retail properties, as well as industrial and office buildings. This was a marked improvement from the third quarter’s figures.

Continued pricing improvement may encourage more industry members to purchase vacant properties and help cut down on the market’s inventory levels.

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