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New Costar Data September 2, 2010

Posted by Sean Tufts in Articles, Research/Data.
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Costar just released the another month of data for their new index, the CoStar Commercial Repeat-Sale Indices.  The entire article is here.  A couple of interesting points stick out:

We do not expect to see half of the deals that sell labeled “distressed”:  

Since 2007, the ratio of distressed sales to overall sales has gone from around 1% to above 23% currently. While overall distressed sales are still increasing, they appear to be peaking as a percentage of sales…

The recession has affected retail real estate slightly less than other product types.   The lack of leases in the hotel & multifamily markets caused those sectors to see the most distress, however, that same factor will likely make them the first to bounce back:  

“Hospitality, at 35%, showed the highest level of distressed sales as a percentage of transactions in the second quarter, followed by multifamily at 28%, office, 21%; retail, 18% and industrial, about 17%.”

Deals (distressed and non-distressed) are slowly returning:

“Sales transaction dollar volume picked up for all property types during the second quarter of 2010, with significant increases in the office and multifamily sectors. Industrial and retail volumes remain low but also showed some increase in activity.”

We are back to 2004 values but hopefully stabilizing.  Take a look at the actual graph of the index.

 

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