Chat with us, powered by LiveChat

National Price Indices Trending Upward at Midyear

Midyear 2017 pricing trends continue to rise steadily across all U.S. regions and types of properties as the equal-weighted U.S. Composite Index rose by 1.4 percent in June, contributing to a second-quarter gain of 5 percent, as the value-weighted U.S. Composite Index advanced by a similar 1.3 percent for the month and by 4.1 percent for the quarter.

Driven by the second-quarter and recent monthly advances, the value-weighted U.S. composite index, reflecting larger asset sales common in core segments across the commercial real estate market – including Philly office space, Philly retail space and Philly industrial space – erased losses earlier in the year, and expanded by 5.4 percent over the 12-month period ending June 2017.

This report in relation to national and Philadelphia commercial properties is being offered through Philadelphia commercial real estate broker Wolf Commercial Real Estate, a Philadelphia commercial real estate brokerage firm.

Pricing momentum, however, remains strongest in the lower end of the market in 2017. The equal-weighted U.S. Composite Index, reflecting the more numerous but lower-priced property sales typical of secondary and tertiary U.S. and Philadelphia commercial real estate properties, increased 17.5 percent over the past year, the strongest 12-month period on record.

Of note among property types studied by Costar Realty Information Inc. is the U.S. Office Index, where stable fundamentals supported 11 percent growth, the only double-digit growth rate among the four major property sectors over the 12-month period. The four major property-type indices in the U.S. and Philadelphia commercial real estate markets recorded price growth of an average 2 percent during the second quarter.

The Prime Markets Indices, dominated by transactions in the largest core coastal metros, have generally increased more slowly than the broader national property type indices, in keeping with the larger pricing index growth rates in non-core markets involving national and Philadelphia commercial real estate listings.

Continuing a trend of declining investment sales transaction activity that began last year and is likely to last through 2017 in the U.S. commercial real estate market – including Philly office space, Philly retail space and Philly industrial space, composite sale pair volume totaled $128.7 billion in the 12-month period ending in June, down 2.2 percent from the previous 12-month period.

Steady pricing growth also increased across all four major U.S. regions in the second quarter as did those involving U.S. and Philadelphia commercial real estate listings. Regional indices advanced by an average of 1.9 percent. The Northeast Index saw the strongest growth over the 12-month period at 11.7 percent while the South Index advanced 9.9 percent. The West Index increased 8.2 percent and Midwest Index rose 7.4 percent during the same period.

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

Wolf Commercial Real Estate, a full-service CORFAC International brokerage and advisory firm, is a premier Philadelphia commercial real estate brokerage firm that provides a full range of Philadelphia commercial real estate listings and services, property management services, and 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 expertise in Philadelphia commercial real estate listings, provides unparalleled expertise in matching companies and individuals seeking new Philly office space, Philly retail space or Philly industrial 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, Philly retail space or Philly industrial 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.