Investors in the United States for commercial real state are now centering on the finest commercial building in most major cities in the country. According to the MIT Center for Real Estate, commercial real estate in six major cities—Los Angeles, New York, Chicago, San Francisco, Washington, and Boston are up to 19 percent.
The Chart of the Day shows that prices on commercial real estate in these six major cities and across the nation hover by the post-crash bottom.
David Geltner, research director at MIT Center at Cambridge, MA, said that there are a lot of potentials and money in the market, as well as people who want to invest in safe, strong, and cash-making investments but there are now low numbers of commercial real estate in the market today.
Geltner also added that demand is actually focused because it is so risk-opposing.
Geltner’s “six-city” index has bring-together data from Real Capital Analytics Inc., New York-based research center, to keep track of sales from the six major cities where the commercial real estate’s earlier value exceeded $10 million.
The entire United States has also gained 1 percent since October 2009, according to the Moody’s/REAL Commercial Property Price Index which is tracking the commercial real estate in the country.
MIT Center for Real Estate helps develop the quality of the built environment and to encourage more educated professionals to practice in the international real estate industry.
The Moody and MIT’s indexes keep tracks of commercial real estate including apartment, office, industrial, and retail properties in the market.