According to report notes from Morgan Stanley analysis of commercial real estate prices measured by the Moody’s/RCA CPPI. It showed that all-property index rose 9.9% this year and currently reach to 0.2% above its December 2007 peak. The rebounding real estate market isn’t treating all commercial property owners equally. For example, the Morgan Stanley analysis notes indicates that the office buildings in major central business are up 27.9%. In the contrary, in non major markets values of suburban office buildings and retail properties both remain down 23% from their 2007 highs. In the overall index improvement we all get too caught up and some market segment are still lagging.
Excerpts from the Article:The rebounding real estate market isn’t treating all commercial property owners equally. Properties like apartment buildings and downtown office buildings have recovered all the value they lost during the bust and then some. But other types of properties, like suburban office buildings, are still worth a lot less than they were before the crash. That’s the conclusion of a Morgan Stanley analysis of commercial real estate prices as measured by the Moody’s/RCA CPPI, a closely followed index based on repeat sales. The report notes that Moody’s/RCA’s all-property index rose 9.9% this year, as of September, and now is 0.2% above its December 2007 peak. The index is up 68.6% since it hit its post-crash low in Jan. 2010. Citation and link:
Grant, Peter. “Commercial Real Estate Is Now a Market of the Haves and Have Nots.” blogs wsj News., 21 Nov. 2014 Web. 03 Dec. 2014.