(For more retail coverage, click GlobeSt.com/RETAIL.)

(To read more on the multifamily market, click here.)

SAN FRANCISCO-Name your property type and it is most likely rising in value faster than it ever has before or close to an all-time high, according to a new report from Global Real Analytics, publisher of the National Real Estate Index. Most property sectors achieved annual price increases in 2005 that have not been seen “since the beginning of this bull market in the 1990s,” says Dick Wollack, CEO of Global Real Analytics, in commenting on the report.Wollack cites a “year-end flurry of property transactions” that helped push most property sectors into double-digit annual price increases. But prices were already climbing, so the action late in the year only further propelled values that were already accelerating.Prices for class A apartments led the property types with an appreciation of 12.8% at the end of 2005, followed closely by CBD office values at 11.8%. Other rates of appreciation ranged from 11.6% for retail assets to 7.6% for suburban office.”The last time the National Real Estate Index reported anything close to the current appreciation rates was for the year 1998 when CBD office prices shot up 15% and class A apartment prices jumped 10%,” the GRA report declares. Still, that year did not produce the same gains across all sectors as in 2005.In addition to different rates of appreciation by property type, the report shows regional differences that in some cases vary dramatically from the national averages. Global Real Analytics titles this section of its report “Florida and the West the Best.”It points out that the Pacific/Southwest and Florida/Gulf regions produced the highest annual average appreciation across all property types, 13% and 12% respectively. That contrasted with an East Central Region average appreciation figure of 5%, lowest in the country.In view of the soaring prices, Wollack comments that “looking forward to 2006 it would be bold to again predict the same level of increases.” But then, it would have been bold to predict the increases seen in 2005, he says.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.


GlobeSt Net Lease Spring 2024Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.