CHICAGO—The Moody's/RCA Commercial Property Price Index keeps showing steady upward movement in pricing along with downward movement in cap rates, but office properties in the nation's CBDs have led the way, and now stand roughly 42% above the pre-crisis peak, according to a new report published yesterday by Moody's Investors Service.
"With capital increasingly chasing CBD office property, particularly in major markets, CBD office prices have increased by 12.1% over the last three months, surpassing price growth in all other CPPI sectors by more than eight percentage points," says Tad Philipp, Moody's director of commercial real estate research.
Office cap rate compression has also been most notable in the major markets, many of which are now at or near their 15-year lows.
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
