CRE pricing relatively flat in January

Commercial pricing slid to start the year.

The commercial real estate pricing situation did not fluctuate significantly to start the year, and this may be due to the significant gains property management companies witnessed during the final few months of 2012.

There was a gain of nearly 1 percent in the U.S. Value-Weighted Composite Index, a part of the Commercial Repeat-Sale Indices from CoStar Group. This measurement typically explains how much the higher-priced transactions cost.

The U.S. Equal-Weighted Composite Index, which is more influenced by smaller properties, experienced a drop of  2.9 percent during January, the report noted. Despite the decline, the figure was still more than 5 percent improved from the same month one year earlier.

Investment also trended down during the first month of the year, the report explained. The Investment Grade Index fell 1.7 percent compared to December, but it was still more than 15 percent improved from its cyclical low.

The pricing situation was not the only that experienced a slowing recently. There was also a stagnation in the construction situation, as overall construction backlog was at eight months during the final three months of 2012, according to a report from the Associated Builders and Contractors. That was no change from the previous quarter's level.

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