CPPI Hits 7-Year Low

The Moody's/REAL Commercial Property Price Index (CPPI) dropped 3.9 percent in September, marking a seven-year low for the Index.
Based on the September data, the Index had fallen 37 percent from its year-earlier level and approximately 42 percent off of its peak in October 2007.
In a report accompanying the latest data release, Moody's Investors Service noted that the decline in pricing continued to show signs of moderating. In April and May, for example, the Index witnessed decreases in excess of 7 percent. Additionally, whereas the Index had edged down approximately 3.2 percent per month on average between June and September, it had experienced an average drop of 4.6 percent in the prior four-month period.
The volume of commercial real estate transactions remained muted in September. The number of properties changing hands dipped slightly to 363. However, the overall value of the transactions increased modestly to $5.1 billion. The Moody's researchers pointed out that the number of monthly transactions averaged roughly 1,000—with a total value of $14 billion—for most of 2008.