Commercial real estate prices are down on a national basis. But according to an index developed by the CoStar Group, November saw some significant price increases for high-profile core transactions in Washington and New York.
According to the D.C.-based commercial real estate information company's location-specific commercial repeat sales index, the income-producing property sector hit bottom in the third quarter of 2009 in the nation's capital, one the country's strongest employment markets. And since then, values have risen by 22% on a year-over-year basis.
Over the same time period, prices are up 6% in the Big Apple. But the other three markets that comprise the nation's five largest commercial real estate centers haven't done so well.
In Los Angeles, CoStar's market-specific indices shows that prices have remained essentially flat over the last 12 months. In Chicago and San Francisco, however, prices have continued to slide.
The company, which bills itself as the sector's leading supplier of information, analytic and marketing services, attributes the volatile price changes tracked in each of the indices to the level of distressed sales that occurred in each market, with the level of distressed sales continuing to cause price fluctuations in these markets as banks continue to unload their troubled assets.
