07/24/2009 | By Allen Kenney
Commercial real estate prices continued to fall in May, down 7.6 percent for the month, according to the latest data from the Moody's/REAL Commercial Property Price Indices (CPPI).
The National All Property Type Aggregate Index, a measure of property prices across all sectors and regions, has declined almost 35 percent from the market peak of October 2007. The Index's May 2009 level represents a 28.5 percent decline from the year-earlier period.
Transaction volume also continued to decline in May, reaching its lowest level ever. Just 282 transactions occurred in the entire month. Of those, only 52 were repeat-sales transactions, which are used to calculate the index series. The repeat sales had a total value of $400 million, a seven-year low.
In a report accompanying the data, Moody's researchers indicated that the new results did offer some positive signs. "Large commercial real estate price declines in the last two months suggest that a bottom may be starting to form, although higher transaction volumes would be necessary in order to draw any more definitive conclusions," the report said.