3/3/2010 | By Allen Kenney
U.S. commercial property prices increased by 1 percent in February, according to the latest data from the Green Street Advisors Commercial Property Price Index (GSA CPPI).
Since May 2009, property values have gained more than 10 percent, Green Street said. However, they still lag the market's 2007 peak by approximately 30 percent.
Mike Kirby, director of research at Green Street, said the results were generally a positive development for the commercial real estate market.
"The good news is that pricing has been firming since the middle of 2009, especially in the last six months. Sellers are feeling less pressure to act, the outlook for fundamentals has become clearer, well-capitalized buyers are becoming plentiful and return requirements across capital markets have come down," Kirby said. "The bad news is that pricing is still far below the levels that prevailed from 2005 through 2007."
Overall, the GSA CPPI showed that prices rose 2 percent in the 12-month period ending in February.