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After First-Quarter Surge, Commercial Real Estate Price Growth Levels Off

new Jason stats graphic - June 2015National commercial property prices leveled off in April after sales volume and property prices rose in the first three months of 2015, gaining more than 5% in the first quarter. The U.S. Composite Index in the latest CoStar Commercial Repeat Sale Indices (CCRSI) report found that prices dipped slightly in April as gains slowed a bit from a recent robust pace.

Both the value-weighted and the equal-weighted U.S. Composite indices decreased slightly in April, by 0.7% and 0.8%, respectively. Both had risen over the last three months, however, and are up more than 12% for the 12-month period ending in April 2015.

The investment grade segment of the equal-weighted U.S. Composite Index — which weighs each transaction equally and reflects the impact from the more numerous smaller market transactions — decreased by 1% in April. The U.S. general commercial segment of the equal-weighted index, which includes sales of lower-tier properties, declined by 0.8%.

Both indices remain positioned for continued recovery and are trending well above their prior year levels. See the full CCRSI June release and supporting materials.

While sales activity declined in April from the record-setting monthly pace set in the first three months of the year — in which repeat-sale transaction volume logged the highest first-quarter total since the CCRSI began — trailing 12-month pair sales remained strong for the month. April 2015 sales volume was still well above the year-prior monthly total, contributing to the strong annual gains.

In fact, the pair volume of $112.6 billion logged for the U.S. Composite Index during the 12 months through April 2015 constituted a 30% increase from the prior 12-month period, reflecting continued capital flows into commercial real estate.

For more information about Philly office space, Philly retail space or other Philadelphia commercial properties, please call 215-799-6900 to speak with Jason Wolf (jason.wolf@wolfcre.com) or Leor Hemo (leor.hemo@wolfcre.com) at Wolf Commercial Real Estate, a premier Philadelphia commercial real estate broker that specializes in Philly office space.

Wolf Commercial Real Estate is a Philadelphia commercial real estate brokerage firm that provides a full range of Philadelphia commercial real estate listings and services, marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other Philadelphia commercial properties for buyers, tenants, investors and sellers.

Wolf Commercial Real Estate, a Philadelphia commercial real estate broker with extensive expertise in Philadelphia commercial real estate listings, provides unparalleled expertise in matching companies and individuals seeking new Philly office space or new Philly retail space with the Philadelphia commercial properties that best meets their needs.  As experts in Philadelphia commercial real estate listings and services, the team at our Philadelphia commercial real estate brokerage firm provides ongoing detailed information about Philadelphia commercial properties to our clients and prospects to help them achieve their real estate goals.  If you are looking for Philly office space or Philly retail space for sale or lease, Wolf Commercial Real Estate is the Philadelphia commercial real estate broker you need — a strategic partner who is fully invested in your long-term growth and success.

Please visit our websites for a full listing of South Jersey and Philadelphia commercial properties for lease or sale through our Philadelphia commercial real estate brokerage firm.

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