Moody's/REAL Commercial Property Price Index (CPPI) rose by 5% in the month of July. The Moody’s/REAL Commercial Property Price Index advanced 5 percent from June. It’s up 1.2 percent from a year earlier and almost 13 percent from its post-peak low in April, the New York-based company said in a report ... More
Archive for the ‘CRE Trends’ Category
Moody’s/REAL CPPI up 5 percent in July
Friday, September 23rd, 2011Commercial Real Estate Verses Bonds
Wednesday, September 14th, 2011There has been lots of discussion (here and here) around the current cap rate environment, particularly for trophy assets. Most would agree that declines in trophy cap rates have followed US Treasuries, as T-Bills remain at historic lows. I wanted to step back and take a look at a 10-year perspective ... More
CBRE Cap Rate Survey 2011
Monday, September 12th, 2011As we've referenced before, CBRE's Capital Markets Group conducts one of the more useful cap rate surveys available. You may view the full report on Scribd. An excerpt of CBRE's commentary from this report: U.S. commercial real estate markets have been in recovery for well over a year now. Low interest rates ... More
Moody’s: CPPI rose 0.9 percent in June
Tuesday, August 23rd, 2011Moody's/REAL Commercial Property Price Index rose 0.9% in June, after jumping 6.6% in May. Three of the four Moody's property type indices showed prices gains in the second quarter: office space with a 8.9% gain; industrial 2.5%; and apartments 0.6%. The retail index faltered a bit, dropping 0.3% over the last ... More
Commercial Real Estate Liquidity Improves
Monday, August 8th, 2011One of the most interesting indices we follow is the Transactions-Based Index (TBI). In order to calculate this index, MIT's Center for Real Estate uses data collected from the NCREIF Index database. While it does have its own price index, one of the more unique measurements this analysis includes is ... More
Moody’s/REAL CPPI vs. MSCI REIT Index
Tuesday, August 2nd, 2011As Moody's continues to compare their overall CPPI to a non-distressed, 6-city trophy index, it made me wonder how the overall performance of the MSCI REIT Index compared to Moody's/REAL CPPI. Then, it occurred to me to consider Green Street's Commercial Property Price Index, too. Note: All indices are indexed to ... More
Moody’s/REAL CPPI vs. S&P Case Shiller Update
Tuesday, July 26th, 2011Following a 6.3 percent increase in Moody's/REAL Commercial Property Price Index, S&P's Case/Shiller Home Price 20-City Composite Index increased by 1.0 percent in May. This index appears to be somewhat of a leading indicator for commercial property prices. It led the CPPI in its downward descent, and appears to have ... More
Moody’s/REAL CPPI jumps 6.3% in May
Monday, July 25th, 2011After hitting a new low in April for the index (which dates back to December 2000), the CPPI popped back into positive territory for the month of May, 2011. All Property Type Aggregate Index recorded its first increase in six months and its largest one month jump since its inception. ... More
A word of caution to apartment investors…
Wednesday, June 29th, 2011Earlier this week, we summarized the results of PWC's quarterly Real Estate Investor Survey, during which, noting that apartment pricing has effectively risen by 25% over the last 4 quarters. Globe Street just published an article which followed the same sentiment for the state of California: Multifamily fundamentals are expected to ... More
Moody’s CPPI and Cap Rate Compression
Thursday, September 15th, 2011As part two to yesterday's post, I wanted to examine how much of the bubble in Moody's/REAL CPPI was attributable to cap rate compression, and the portion which was attributable to something else (eg. rent growth, increase in occupancy, etc.). A disclaimer, I am in no way a statistician, but I ... More
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