Inflation-adjusted prices top pre-crisis peak for first time.

PositionCommercial

Property prices increased again in August, pushing both apartments and commercial property prices over their pre-crisis peaks, reported Moody's Investors Service and Real Capital Analytics (RCA), both based in New York.

The Moody's/RCA Commercial Property Price Indexes (CPPI) increased 1.6 percent in August, led by a 1.8 percent rise in core commercial properties. Apartment community prices rose 1.3 percent.

"While the CPPI topped its pre-crisis peak in September 2014 on a nominal basis, in August the CPPI topped it on a Consumer Price Index [CPI]-adjusted basis," Moody's reported. Prices now stand 14.5 percent above pre-crisis peaks on a nominal basis and 1.5 percent above peaks when adjusted for inflation. Apartment prices exceed their precrisis peak by more than 30 percent while commercial property prices exceed their prior peak by 8 percent, according to Moody's.

Central business district (CBD) offices performed best over the past three months as prices increased 6.3 percent, the report said. CBD office price growth over the past three months exceeded that of next-best-performing segment suburban offices by more than 3 percentage points.

The 4.5 percent price increase seen in major markets over the past three months exceeded that of non-major markets by nearly 3 percentage points. Major-market prices now exceed their November 2007 pre-crisis peak by about 33 percent while...

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