Moody’s/REAL Commercial Property Price Indices, December 2009

The National — All Property Type Aggregate Index recorded a 1.5% price decline in the month of October.  The index now stands 43.7% below the peak measured two years ago, in October 2007.

October measured an uptick in transaction volume compared to previous months.  97 repeat-sales totaling $1.4 billion were used in calculating the monthly index.

The eastern office market was dragged down by the poor performance in New York over the past year.  Office prices in the East fell 37.3% annually and 40.6% from the peak.

The South had the worst performance of any region, with three of the four property types measuring annual declines greater than 30%.  Apartments in the South saw the largest drop of any sub-index, with prices cut in half over the past year.

Southern California properties saw relatively mild price declines with no property type measuring an annual decline above 30%.

New York offices saw the largest annual price declines of the three MSA-level office indices.  Office prices in New York fell 38.1% over the past four quarters, and have dropped 39.3% overall.

·Prices on Florida apartments have been falling for the past three years and this year, prices plummeted 46.1%. Florida apartment values are now 51.6% below their peak.

Full report available here as PDF download – Commercial property prices indices Dec 2009