Real Capital Analytics introduces the industry’s first comprehensive suite of price indices for commercial real estate

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Real Capital Analytics announced the release of the RCA Commercial Property Price Indices, a revolutionary suite of more than 200 transaction-based indices that measure property prices across local, state, regional and national levels.

RCA CPPI Region & Market Summary

“Never before has the industry been able to measure commercial property prices at such a comprehensive and granular level,” - Robert White, RCA Founder and President

Real Capital Analytics (RCA), continuing its history of pioneering advancements in commercial real estate information, announced today the launch of the RCA Commercial Property Price Indices (RCA CPPI) RCA Commercial Property Price Indices. The RCA CPPI is a revolutionary suite of more than 200 transaction-based indices using repeat-sales methodology that objectively measure property prices across local, state, regional and national levels.

“Never before has the industry been able to measure commercial property prices at such a comprehensive and granular level,” said Robert White, RCA Founder and President. “It’s a completely new and more accurate measure of price trends across markets and property types and will be a great tool for anyone involved in valuation, strategy and risk assessment.”

In 2007, RCA launched the first repeat-sales regression (RSR) indices for commercial real estate called the Moody’s/REAL CPPI. These national indices quickly became an industry benchmark and are still published with Moody’s Investors Service as the Moody’s/RCA CPPI. The RCA CPPI suite was developed to complement the national indices published with Moody’s and uses the same methodology.

The indices will be calculated on a monthly basis and are powered by RCA’s robust property transaction database. The RSR approach produces quality-controlled property price indices and is widely acknowledged as the most accurate way to track real estate price movements. In addition, advanced statistical techniques developed by renowned academic Dr. David Geltner of Geltner Associates enable the indices to reflect current trends without time lags.

The RCA CPPI provides unique insight into market trends that may not always be apparent when using traditional approaches. In the inaugural release, summarized below, the indices highlight the uneven commercial real estate recovery to date but signal a broader rebound is underway.

  • Price appreciation has started to slow in those real estate markets that were the first to rebound and investors have started bidding up prices in markets that were hit the hardest during the last cycle. Miami, Orlando, Phoenix, Sacramento and Las Vegas all posted some of the largest increases in prices over the past year.
  • San Jose recorded the most appreciation of any market, up 30% over the past year, and in Manhattan prices are up 23%—both are exceptional markets, where prices have rebounded early and continue to rise quickly even as they approach 2007’s peak levels again.
  • Other markets outperforming national trends include Texas (Dallas/Houston/Austin), Denver and Seattle, illustrating the next tier of cities that have recently come into favor among institutional investors.

For more information on the RCA CPPI visit us at http://www.rcanalytics.com/.

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Nina Turner
Real Capital Analytics Inc.
(212) 387-7103
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