US office prices rose in the second quarter for the first time since 2007, offering a glimmer of hope for the commercial property market, according to a report yesterday from Moody’s, the ratings agency.
In the past 12 months, US commercial property prices across all sectors fell nearly 27%, the Moody’s/ Real commercial property price index showed.
From April to June, however, US office prices rose 4.1%, the first increase since the second quarter of 2007.
However, there is a divergence within the overall market, with office prices falling in big cities but ticking up in smaller secondary areas. Meanwhile, industrial, retail and apartment buildings are continuing to suffer and the index slipped by 1 per cent in June.