Friday, October 31, 2008

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

Today I’m adding yet another commercial property price index to the list of recurring posts that track the commercial real estate market.

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 August strongly suggest that prices for commercial real estate have eroded significantly.

Taken together, the MIT/CRE Commercial Property Index, S&P/GRA Commercial Real Estate 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.