Tuesday, August 19, 2008

Standard & Poor's Announces May Results of the S&P/GRA Commercial Real Estate Indices (SPCREX(TM))

NEW YORK, Aug. 19 /PRNewswire/ -- Standard & Poor's today announced the
May results for the S&P/GRA Commercial Real Estate Indices. Nationally,
commercial real estate prices are up +3.6% versus May 2007. The indices
measure the change in commercial real estate prices by property sector and
geographic region in the United States. The S&P/GRA Commercial Real Estate
Indices comprise ten commercial real estate indices: a national composite,
five geographic regions, and four national property sectors.

The National composite reported an annual price appreciation of +3.6%,
versus May of 2007, up from the +3.1% reported in April's data. While this
is a modest improvement from last month's report, it is still well below
this cycle's peak of +14.5%, reported in June of 2006.

The National composite posted its highest monthly return so far this
year, returning +0.7% in May versus April. Three of the five regions -- the
Midwest, the Northeast and the Pacific West -- reported relatively positive
results, as their annual growth rates showed improvement over last month.
Four of the regions reported positive monthly returns, while the Desert
Mountain West was down for the month. After reporting three consecutive
positive months, the Desert Mountain West reported the largest price
decline in the May/April period returning -1.0%. The Mid Atlantic South
performed the best during the May/April period, returning +1.9%. Over the
past 12 months, the Pacific West has the highest return of +7.2%.

In the property sector, two of the four sectors reported positive
returns over the May/April period. Office had the biggest gain for the
second straight month, reporting a one-month return of +1.7% in May.
Apartments, up 0.6% for the month, reported the highest annual return,
+5.8%, but this is a marked deceleration from the +7.7% reported just two
months ago. Retail has the lowest returns over the past year, returning
+0.5%.

"This month's numbers offer some encouragement", says David Blitzer,
Managing Director and Chairman of the Index Committee at Standard & Poor's.
"The results for commercial real estate were slightly positive for the
month. The National composite was up 0.7% for the month and is up 3.6% from
May 2007, an improvement over the +3.1% annual gain reported for April's
figures. Only one of the regions and two of the property sectors saw price
declines during the May/April period. One region, the Desert Mountain West,
is reporting a decline over the past year, returning -1.9%. The Mid
Atlantic South and the Office sector were standouts for the month,
returning +1.9% and +1.7%, respectively. It will take a few more months of
data to determine if commercial real estate is ending its two-year period
of growth deceleration or is this just a temporary seasonal bounce."

The S&P/GRA Commercial Real Estate Indices are published on the second
to last Tuesday of each month at 9:00 am ET. They are calculated to reflect
underlying real estate and capital market fundamentals by measuring the
change in commercial real estate prices by property sector and geographic
region. Reported index values are based on a three-month rolling average
transaction price per square foot, and are computed using a stock value, or
market capitalization-weighted, methodology. This approach utilizes average
transaction prices per square foot and commercial real estate stock data to
derive index levels.

To be eligible for inclusion, property sales must be identified as
closed transactions in the defined commercial real estate regions and
sectors. Closed commercial transactions are those where the escrow has
closed and the title has been transferred to the new owner. There are no
transactions included in the index that are appraisals, just listed, sales
pending, or in escrow.

The indices are maintained and published under agreements between
Standard & Poor's and GRA/Charles Schwab Investment Management (CSIM).

About Standard & Poor's Index Services

Standard & Poor's Index Services, the world's leading index provider,
maintains a wide variety of investable and benchmark indices to meet an
array of investor needs. Its family of indices includes the S&P 500, an
index with $1.5 trillion invested and $4.85 trillion benchmarked, and the
S&P Global 1200, a composite index comprised of seven regional and country
headline indices. For more information, please visit
http://www.standardandpoors.com/indices.

About Standard & Poor's

Standard & Poor's, a division of The McGraw-Hill Companies (NYSE: MHP),
is the world's foremost provider of financial market intelligence,
including independent credit ratings, indices, risk evaluation, investment
research and data. With approximately 8,500 employees, including wholly
owned affiliates, located in 21 countries. Standard & Poor's is an
essential part of the world's financial infrastructure and has played a
leading role for more than 140 years in providing investors with the
independent benchmarks they need to feel more confident about their
investment and financial decisions. For more information, visit
http://www.standardandpoors.com.



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[Via Real Estate Newswire]

Опубліковано prolink о 5:01 AM

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