Commercial Prices Rise in 2nd Quarter

U.S. commercial real estate prices, aided by a strong economy, continued their more than four-year rise in the second quarter, with office properties once again setting the pace, a report said. High job growth and low unemployment are filling up buildings and causing prices and rents to rise for all sectors--apartments, shopping centers, warehouses, downtown and suburban offices--covered by the quarterly study from Los Angeles-based CB Commercial Real Estate Group Inc. As was the case for almost every quarter since the start of 1996, properties in Northern California and offices in the suburbs were the leaders. “The market is strong virtually everywhere,” said Dan O’Connor, managing editor of the report, called the National Real Estate Index. The composite price index rose 2.1 points to 115.8, its highest level since the early 1990s, just before prices plummeted amid a weak economy and a glut of construction. The report marks the 17th quarterly rise in the index and comes on the heels of a 1.6-point gain in the first quarter.