Price Growth Regains Speed in Q2

CoStar Group headquarters in Washington, DC> (Photo: CoStar)

WASHINGTON, DC—Commercial property prices benefited from renewed investor confidence in the second quarter, and pricing growth for Q2 reflects that, CoStar Group said Friday. Both of CoStar’s composite Commercial Repeat Sale Indices were up as Q2 ended, following a Q1 that reflected a slowdown, with pricing seeing gains of nearly 2% across all four major property types in the most recent quarter.

The value-weighted US Composite Index, which is influenced by the sale of high-quality, larger assets, advanced by 3.3% from the previous quarter. Meanwhile, the equal-weighted US Composite Index, which includes the more numerous sales of smaller properties, rose 2.1% in Q2. All four US regional indices experienced strong growth in Q2, led by the West Composite Index, which advanced 0.6% past its previous cyclical high of nine years ago, becoming the second region to exceed the prior peak behind the Northeast Composite Index.