Moreover, CoStar reports that other measures of liquidity are consonant with a fully recovered market. For one thing, for-sale properties are trading at a more rapid clip, with the average time on the market declining by 15.5% in the 12 month-period that ended in April. At 261 days, the average time on market as of April was just 23% higher than the lows recorded during the peak of the last cycle in 2006-2007.

And the bid-ask gap is the narrowest it has ever been for the CCRSI, with the sale-price-to-asking-price ratio narrowing by four percentage points over the past 12 months to 98.3%. The share of properties withdrawn from the market by discouraged sellers also receded by 6.4 percentage points to 24.5% during the most recent 12-month period.

WASHINGTON, DC—Commercial property prices advanced by 1.4% during April based on CoStar Group's latest Commercial Repeat Sale Indices (CCRSI), issued Wednesday. However, growth in values still favors lower-priced assets typical of secondary and tertiary markets.

Both of the major CCRSI indices—the equal-weighted US Composite Index and the value-weighted US Composite Index were up by 1.4% for April. On a year-over-year basis, though, the equal-weighted index rose by 14.8%, whereas the value-weighted composite, which gives more emphasis to higher-priced trades, gained by just 6.2% over the same period.

Within the equal-weighted US Composite Index, the same pricing trend prevails. CoStar says the index's General Commercial segment, which is influenced by smaller, lower-priced properties, increased 1.4% in April and 15.9% over the previous 12 months. Meanwhile, the Investment-Grade segment of the index, weighted more toward higher-value properties, rose 1.3% month over month and a more modest 6.5% from the year-ago period.

CoStar data reflect the lower transaction volume and reduced capital flows seen in other recent industry reports as well as anecdotally. The firm says composite pair volume of $35 billion through the first four months of 2017 was 1.2% lower than the average from the same period in 2015-2016. That being said, year-to-date volume through April was still the second-highest for the period on record for the CCRSI.

Moreover, CoStar reports that other measures of liquidity are consonant with a fully recovered market. For one thing, for-sale properties are trading at a more rapid clip, with the average time on the market declining by 15.5% in the 12 month-period that ended in April. At 261 days, the average time on market as of April was just 23% higher than the lows recorded during the peak of the last cycle in 2006-2007.

And the bid-ask gap is the narrowest it has ever been for the CCRSI, with the sale-price-to-asking-price ratio narrowing by four percentage points over the past 12 months to 98.3%. The share of properties withdrawn from the market by discouraged sellers also receded by 6.4 percentage points to 24.5% during the most recent 12-month period.