Your Commercial Real Estate Source in the San Francisco Bay Area
This CoStar article verifies what we are seeing in the Bay Area. Investors are looking at their options and see growth potential and deals to be had in the market. Volatility in the stock market, yields compared to alternative investments and the historical lows in interest rates have fueled investors to seek out commercial real estate.
Fewer Distressed Sales and Solid Investment Grade Deal Activity is Driving Sustained Pricing Rebound
By Randyl Drummer
CoStar’s monthly National Composite Index of commercial real estate prices increased 2.2% in October from the same period a year ago, the first year-over-year improvement since the economy took a sharp downward turn in 2008.
The solid recovery of investment-grade property prices and the continued decline in distressed sales volume spurred the growth in commercial property pricing, lifting the index to an impressive 1.8% gain in October from the previous month and continuing its upward trend.
The year-over-year and monthly increases in October reflected long-awaited positive momentum in the composite index, which has now achieved a steady 1.3% average monthly growth rate over the six-month period between May and October 2011, according to this month’s CoStar Commercial Repeat Sale Index (CCRSI), based on 743 repeat sale transactions recorded in October and more than 100,000 repeat sale transactions since 1996.
Other highlights from this month’s CCRSI report include the following:
Read more of the CoStar article here.