S&P Indices to Track Commercial Real Estate
Standard & Poor's is launching a series of commercial real estate indices to measure changes in commercial real estate prices.
The indices - which are being created in partnership with GRA, an affiliate of Charles Schwab Investment Management - will measure commercial real estate price changes by property sector and geographic region, the financial information company reports.
There will be 10 indices, including a national composite, five geographic indices (Desert Mountain West, Mid-Atlantic South, Midwest, Northeast and Pacific West) and four property sector indices (multifamily, office, retail and warehouse).
The SPCREX indices are to be based on closed commercial real estate transaction input from GRA, and index values will reflect a three-month rolling average transaction price per square foot, weighted for market capitalization.
David Blitzer, managing director/chairman of the index committee at S&P, said that the indices will bring "liquidity and tradability to an important and growing asset class."
And Jim Sempere, managing director, real estate investments and research, Charles Schwab Investment Management, said that the indices will serve as an "investment tool for the burgeoning property derivatives marketplace."
The indices are slated to be launched on Aug. 21, with subsequent index levels to be released each month. (c) 2007 Mortgage Servicing News and SourceMedia, Inc. All Rights Reserved. http://www.mortgageservicingnews.com http://www.sourcemedia.com/