CBD Office Buildings Experienced 10-Year Price Appreciation of More Than 100 Percent

Posted on December 10, 2015

The latest Commercial Property Prices Indices (CPPI) report produced by Moody’s and Real Capital Analytics (RCA) shows that prices in the commercial real estate universe have experienced double-digit appreciation over the past decade.

According to the report, the national all-property composite index has shown cumulative appreciation of 38.0 percent since October 2005, while the index for core commercial assets has gained by 34.9 percent. Significant price appreciation was evident in the index for apartment properties, as well, which increased by 45.9 percent since a decade ago.

The greatest level of price appreciation over the past 10 years, however, was posted by office buildings in Central Business Districts (CBDs), which posted a 103.2 percent increase over that time period. The index for retail properties, on the other hand, showed appreciation of only 8.6 percent during the past 10 years.