Tuesday, February 03, 2009

Commercial Cataclysm?: Moody’s/REAL Commercial Property Price Index November 2008

The Moody’s/REAL CPPI data series is produced by the MIT/CRE but is noted to be “complimentary” to their alternative transaction based index (TBI) as it is published monthly and is formulated from a completely different dataset supplied by Real Capital Analytics, Inc.

The latest results reflecting national data for all property types settled through November strongly suggest that prices for commercial real estate have eroded significantly registering a 14.32% decline on a year-over-year basis.

Taken together, the MIT/CRE Commercial Property Index and the Moody’s/REAL CPPI all appear to be firmly indicating that the nation’s commercial real estate markets are experiencing a significant decline.