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CoStar Repeat Sale Indices Show Solid November Gains for Investment-Grade Assets; Steady Improvement For Smaller General Properties
By Randyl Drummer
The CoStar National Composite Index of commercial real estate pricing rose for the seventh straight month since last spring as investment-grade sales made solid pricing gains in November 2011, and the level of distressed sale transactions continued to decline during the month.
The composite index rose 0.6% in November from the previous month, with prices now an average 1.8% higher compared to the same period a year ago, according to this month’s release of the CoStar Commercial Repeat Sale Index (CCRSI), which tracks sale pair transaction data through Nov. 30.
November also brought the second consecutive year-over-year increase in the composite index. Last month, CoStar reported that the index rose 2.2% in October from the same period a year earlier, the first year-over-year improvement in the composite since the U.S. economy took a dive in 2008.
The national General Commercial and Investment-Grade indices both rose over the previous month for the seventh consecutive time since May 2011, boosted by a stabilizing commercial property recovery during the second half of the year.
Despite the gains, the real estate recovery continues to be less robust than previous economic cycles, with the composite index remaining 31.8% below its August 2007 peak during the height of the real estate boom.
The investment-grade index recorded a solid 2.2% increase in November, however, based on 105 sale pair transactions, with average prices now 6.4% higher than the same period a year ago. The general property sales index rose slightly by 0.3%, with prices up 1.1% from the year-earlier period based on 633 transactions.
Read more of the CoStar article here.