When compared with previous month, real estate prices within the U.S rose by 4.3% in September – the biggest month-on-month grow in ten years of keeping records. The Moody’s/REAL Commercial property cost index has become up .3% on this past year, after a small amount of high-priced deals drove the index up from an eight year lower in August.
The index continues to be lower by 43% since its greatest reason for October 2007, but it’s important to note the total amount of transactions in September – $3.7 Billion – may be the largest since The month of january 2008, and double the level of transactions completed in August.
The index also breaks qualities lower by type, and classifies them either as “apartment structures”, “retail”, “industrial” and “office”. Important to note is the fact that apartment structures are up by 16% around the third quarter of 2009, while retail qualities fell by 12%, industrial structures fell with a modest 1.2%, and office qualities improved by 4.4%.
Office property prices improved by 22% on this past year – the greatest increase associated with a property type, also it seemed to be up 9.4% around the second quarter of the year.
CoStar Group discovered that prices for investment grade qualities rose 5.5% in September which values are lower 4.9% from last year and 29% from 2 yrs ago.
CoStar, unlike Moody’s, tracks transactions below $2.5 million.
The biggest single transaction transported in August was for any deal for Union Bank Plaza, a 627.000 business building in La.