Apartment Building Investment Still Leads as CRE Prices Up 11% YoY in CoStar’s Repeat Sales Indexes

CoStar is out with their latest Commercial Repeat Sale Indices (CCRSI) showing that:

  • Commercial Real Estate prices post double-digit annual gains in May
  • Momentum picks up in the General Commercial segment
  • Improvements in market fundamentals underpin growth in commercial property pricing
  • Capital flows remain healthy
  • Distress levels continue to dissipate
  • See link for numbers and details-

Commercial Real Estate Up 11% YoY in May 2014

CoStar has been tracking the indexes of repeat commercial real estate sales since 1996. Note that the Value Weighted index is driven mostly by core properties while the Equal Weighted index is mostly driven by smaller, non-core property sales.

For apartment building investors the good news is that the multifamily sector still leads the pack, in the smaller, non-core segment by more than in the core segment. The following charts come from the Complete CCRSI data set which is an xls worksheet.

Apartment building investment sector still leads other commercial real estate

H/t: Calculated Risk Blog

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