Good news for commercial property investors: prices are on the rise.
After months of sluggish growth, U.S. commercial property values grew
2% in May, according to the Green Street Commercial Property Price
Index, released Thursday.
The index, which focuses on higher-quality properties around the
country owned by real estate investment trusts, is up 4% year-to-date,
and 9% above its 2007 high.
The increased momentum comes as REITs have enjoyed something of a
rally in the first half of the year, reversing a 2013 slump as worries
about rising interest rates have subsided. The Dow Jones Equity All REIT
Total Return Index is up more than 15% since January, compared with
less than 2% for the Dow Jones Industrial Average.
“It’s likely the trend continues,” Peter Rothemund, an analyst at
Green Street Advisors, said in a news release. “Real estate pricing
currently looks attractive.”
Source: http://blogs.wsj.com/developments/2014/06/05/commercial-property-prices-pick-up-steam-in-may