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«US commercial real estate suffered its worst annual capital return on record, according to the IPD US Quarterly Property Indicator, which fell -23.9% in 2009, taking the total capital decline to -33.4% from December 2007 when real estate values were at their peak.
The US if the fourth market for which IPD now has a full calendar year worth of figures to analyse. For full release, please click here. The Indictor shows:
- Cap rates softened by 140 basis points over the year to end 2009 at 7.1% - the highest level in six years;
- New York, Washington and Chicago all suffered slightly less severe market value write-downs than the broader US market, while LA and San Francisco both fell further than national average;
- A distinct geographic trend in the pace of capital depreciation was also visible at sector level, with East Coast outperforming the West Coast in all four main sectors;
- Income returns, at 6.6%, partially offsetting the falls in value and contributing to an annual total return of -18.7%.
The second IPD Index News bulletin, which compared on the Dutch and UK real estate markets, is also now available». (CS della Società).
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