Commercial real estate prices as measured by Moody's Investors Service/REAL Commercial Property Price Indices (CPPI) saw further decline in October by 2.4% over the previous month. Prices are down 11.5% from their peak in October 2007 and are 0.4% lower than they were two years ago, the rating agency said.
Since the index first started to decline in September 2007, 10 of the last 14 months have had negative price returns, with half of those 10 declining more than 2%, Moodys said.
The southern industrial sector had the largest decrease in the annual indices, with prices dropping 11% over the last four quarters. The three major office markets San Francisco, New York, and Washington DC declined in property prices in October, although prices in all three cities are still significantly higher than they were two years ago.
Moody's/REAL Commercial Property Prices Indices are based on the repeat sales of the same properties across the US at different points in time.