Moody's: CRE Stable to Improving in 3Q

The major commercial property types were either stable or showed slight improvement in the third quarter of 2002, according to Moody's Investors Service."Although commercial real estate typically lags the business cycle, the signals point to continued stability or the early signs of recovery from the down part of the real estate cycle," said Sally Gordon, a Moody's analyst who conducted the study. The hotel sector showed the greatest improvement, shooting up to 32 points for the third quarter from zero in the second quarter, the study found. Neighborhood and community shopping centers were best positioned, with a score of 88. Ms. Gordon said this segment "is sufficiently robust to withstand some modest relaxation of demand growth." The multifamily sector moved up to 76 points, from 75 in the second quarter, while the office sector rose from 46 to 50 and the industrial sector rose from 52 to 58. Markets with the best showing overall in the third quarter were New York; Long Island, NY; Norfolk, Va.; northern New Jersey; and Riverside, Calif. Those with the worst showing were Denver; Austin; Baltimore; Stamford, Conn.; and St. Louis. Moody's can be found online at http://www.moodys.com.