Real Capital Analytics (RCA) has launched the Commercial Property Price Indices (CPPI), a suite of more than 200 transaction-based indices using repeat sales methodology that measures property prices across local, state, regional and national levels.
The indices will be calculated on a monthly basis using RCA’s property transaction database. In addition, advanced statistical techniques developed by academic Dr. David Geltner of Geltner Associates enable the indices to reflect current trends without time lags.The inaugural release highlights include:
- Price appreciation has started to slow in those real estate markets that were the first to rebound and investors have started bidding up prices in markets that were hit the hardest during the last cycle. Miami, Orlando, Phoenix, Sacramento and Las Vegas all posted some of the largest increases in prices over the past year.
- San Jose recorded the most appreciation of any market, up 30 percent over the past year, and in Manhattan prices are up 23 percent. These are exceptional markets where prices have rebounded early and continue to rise quickly even as they approach 2007 peak levels again.
- Other markets outperforming national trends include Texas (Dallas/Houston/Austin), Denver and Seattle, illustrating the next tier of cities that have recently come into favor among institutional investors.