8/24/2009 | By Allen Kenney
The latest data from the Moody's/REAL Commercial Property Price Index (CPPI) suggest the precipitous decline in commercial real estate values of the past two years may be slowing.
The index dropped 1 percent for the month of June, bringing its total decline from the year beginning July 1, 2008, down to 26.9 percent. Since the commercial real estate market reached its peak in October 2007, the index has lost 35.5 percent of its value.
Despite the June decline, Neal Elkin, president of Real Estate Analytics LLC (REAL), said the latest results showed that the recent market turbulence may be coming to an end.
"This month is not unexpectedly bad news like the two previous months," said Elkin, referring to the index's decreases of 7.6 percent in May and 9 percent in April. "It could signal the beginning of a gradual tapering of the decline, the beginning of the final stage of the price correction from the lofty bubble of two years ago."
Overall transaction volume for June jumped 25 percent from the previous month. The 437 transactions in June had total value of $4.4 billion, a 40 percent gain from May.