CoStar reports “Investors both large and small remained intently focused on commercial real estate last year, as pricing levels rose in tandem with occupancies, vacancies remained near cyclical lows, and rent growth posted healthy gains across property sectors and regions. “

“Those were among the findings in the February 2015 CoStar Commercial Repeat Sale Indices (CCRSI), which analyzed commercial property sales through December 2014, providing one of the broadest measures of commercial real estate repeat sales activity. “

Major Points:

• Capital Markets Are Highly Liquid
• Pricing Gains Seen Across Property Types and Regions
  “ Among the CCRSI regional indices, the South Index led the nation in terms of price appreciation in 2014, with price growth of 15.1%”

Pricing Trends in 2014

Office: Pricing in the Office Index increased 9.5%.
Retail: CCRSI’s Retail Index posted a 13.9% increase.
Industrial: The Industrial Index advanced by a solid 11.9%.
Hotel: The CCRSI Hospitality Index surged upward by 17.7%.
Land: The Land Index gained 19.9%.

The South
“The South Composite Index increased by 15.1% in 2014, driven by strong growth across all property sectors. Price growth has rebounded in fast-growing markets like those in Texas and North Carolina that have benefited from exceptionally strong demand growth, falling vacancies and solid rent gains. The South Multifamily Index posted the strongest annual growth in the composite index, of 14.6% in 2014. “

(Source: CoStar Mark Heschmeyer,  February 11, 2015)