For the first time in nearly two years data is showing a larger monthly increase in the broader commercial real estate market compared to the top end of the market. Data from the CoStar Commercial Repeat Sale Indices (CCRSI) report showed an April gain of 1% over the previous month in the equal-weighted index compared to a 2.2% decline in the value-weighted composite index for the same period.
This is indicative of a possible shift from recent growth being isolated to higher-end properties to growth in the broader market of smaller and less expensive properties and a sign that investors are prepared to look towards the middle and lower end of the market for value.
Even with European investors playing a key role in CRE improvements, with European buyers already tripling their purchases over 2011 levels, the improvement in the overall CRE market is a welcome sign for most commercial real estate investors.
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