The Moody's/REAL Commercial Property Price Index (CPPI) saw its largest one-month drop since August 2010, declining 3.3 percent. The index is down 44.6 percent from its October 2007 peak. This drop is the index's largest in 5 months and is mostly a product of distressed trades making up 29 percent of ... More
Archive for the ‘Industry Commentary’ Category
Moody’s CPPI drops 3.3 percent in February
Thursday, April 21st, 2011Commercial real estate and inflation
Friday, April 15th, 2011Recently, National Real Estate Investor published an article asking, "Will Commercial Real Estate Provide a Good Hedge Against Inflation?" In the 1980s, a slew of papers examined the rate of return on various property types and concluded that commercial real estate investors were in fact compensated for inflation risk. However, with many ... More
REITs vs. CMBS Property Sales
Thursday, April 7th, 2011In Dr. Geltner's March issue of his Professor's Corner newsletter, he broke out repeat sales of properties sold by REITs and those previously acquired using CMBS loans. His findings? REIT properties tended to exhibit less of a price bubble during the boom period, but then they did not fall nearly ... More
CBRE Cap Rate Survey – Year End 2010
Wednesday, April 6th, 2011As we've referenced before, CBRE's Capital Markets Group conducts one of the more useful cap rate surveys available. Courtesy of Scott Pollock & Steve Latkovic over at The Commercial Insider, you may view the full report on Scribd. An excerpt of CBRE's commentary from this report: Total U.S. investment transaction volume is ... More
Moody’s/REAL CPPI declines 1.2 percent
Monday, March 28th, 2011Moody's/REAL CPPI continued its decline, dropping by 1.22 percent in the first month of 2011. While the index's volatility has subsided, the divergence between trophy and distressed assets continues. A nice addition to the Moody's newsletter is the new "From the Lab" section, which included continued coverage of the CPPI's ... More
Moody’s/REAL CPPI Trifurcation continues
Monday, March 7th, 2011In the latest Professor's Corner Newsletter, Sam Chandan, Global Chief Economist for Real Capital Analytics, commented on the CPPI's continued trifurcation between the composite index, distressed deals and the 6-city trophy index. Apart from the dispersion of outcomes across property types, the decline in December's aggregate index belies the continuing divergence ... More
Cap rates, treasuries and spreads
Friday, January 28th, 2011Back in July and August, when cap rate to 10-year treasury spreads were nearly 500 basis points, the mainstream media picked up on it, flooding the news with articles (see Bloomberg's coverage) with the statistic. Over the next 3 months, the 10-year T-bill rose 60 bps, from 2.7% in August ... More
REO Monitor: Crossroads One, Englewood, CO
Monday, January 10th, 2011WRT Crossroads One, LLC has closed on Crossroads One, located at the address of 9800 Pyramid Court, near Interestate 25 and East Lincoln Avenue. WRT Crossroads One, LLC is an entity controlled by Winthrop Realty, who also owns the building next door, aptly named Crossroads Two. In November, CRE Console ... More
Cap Rate Trends: Q4 2010
Sunday, January 9th, 2011PwC recently released their fourth quarter results for their Real Estate Investor Survey 2010. As we've mentioned before, this report remains one of the most valuable and comprehensive reports in the industry. PwC's third quarter report covered investor's heightened interest in core assets in primary markets, but this quarter's survey, titled ... More
Moody’s CPPI drops 4.2 percent in March
Tuesday, May 31st, 2011Moody's Commercial Property Price Index (CPPI) fell 4.2 percent in March. This drop makes for 4 months of consecutive declines for the index and marks a new post bubble low, resting at 101.17. Find the full report on RealIndices.com or RCAnalytics.com. The reason for this decline? Moody's: Nearly one third of ... More
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