Economic Update (May 30, 2012)

Commercial property prices were flat in March. The recovery in commercial property prices paused after having regained nearly half the decline that occurred during the financial crisis.

  • Apartment prices edged down 0.1 percent in March. Prices rose 18.0 percent over the prior 12 months, outpacing other commercial property sectors, and have recovered two-thirds of the peak-to-trough decline;
  • CBD office prices moved higher with a 0.3 percent increase, while prices of suburban office fell 3.5 percent. CBD office markets have recovered 62.5 percent of the peak-to-trough decline, versus 25.2 percent for suburban markets;
  • Retail turned up 1.7 percent in March after having declined in December and posting weak gains in January and February;
  • Industrial accelerated with a 1.7 percent increase in March, bringing the 12-month change into the double-digits for the first time since 2007.


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The Market Commentary blog on presents analysis of the macro- and micro-economic fundamentals impacting the REIT and commercial real estate industry. The Nareit economics team offers their commentary on the state of the market, the outlook for commercial real estate and breaking macroeconomic news. The opinions set forth here are solely those of its author(s), and do not necessarily reflect the views of the Nareit or its membership. For more, see our Terms of Use.