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Commercial Prices Roll Back to 2002 Levels

NEW YORK CITY-The newest Moody's/REAL Commercial Property Price Index report shows declines have eased since last spring but are nearly 44% off their peak.

By Paul Bubny | Updated on December 22, 2009

NEW YORK CITY-Although the pace of decline has continued to slow in recent months, commercial property prices have fallen nearly 44% since their peak two years ago, and now look more like what the industry saw in 2002. So says Moody’s Investors Service in its latest Moody’s/REAL Commercial Property Price Index report, released Monday.

The report, which covers transactions through the end of October, shows a 1.5% dip in prices nationwide during the month. That compares to the 8.6% monthly decline six months earlier, followed in May by a 7.6% slide.

“The pace of declines has tapered off since the large drops measured in April and May; however, further declines are anticipated,” the report states. With the 43.7% drop in the Moody’s/REAL National All-Property Aggregate since the October 2007 peak, “it is now necessary to look to properties purchased in 2002 to find positive price appreciation.”

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