CBD Office Prices Soar Above Other Sectors
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Prices for CBD office buildings, like the recently-sold Willis Tower in Chicago, have outpaced the recovery in other segments
CHICAGO—The Moody’s/RCA Commercial Property Price Index keeps showing steady upward movement in pricing along with downward movement in cap rates, but office properties in the nation’s CBDs have led the way, and now stand roughly 42% above the pre-crisis peak, according to a new report published yesterday by Moody’s Investors Service.
“With capital increasingly chasing CBD office property, particularly in major markets, CBD office prices have increased by 12.1% over the last three months, surpassing price growth in all other CPPI sectors by more than eight percentage points,” says Tad Philipp, Moody’s director of commercial real estate research…
