Standard & Poor's Announces June Results of the S&P/GRA Commercial Real Estate Indices (SPCREX(TM))

Sep 18, 2007, 01:00 ET from Standard & Poor's

    NEW YORK, Sept. 18 /PRNewswire/ -- Standard & Poor's today announced
 the June results for the S&P/GRA Commercial Real Estate Indices. The
 indices measure the change in commercial real estate prices by property
 sector and geographic region in the United States. The S&P/GRA Commercial
 Real Estate Indices comprise ten commercial real estate indices: a national
 composite, five geographic regions, and four national property sectors.
     The table below summarizes the results for June 2007. More than 13
 years of monthly history for these data series is available and can be
 accessed in full by going to
                    June 2007    June/May      May/April
     Index           Level       Change (%)    Change (%)    1-Year Change (%)
     Apartments      138.79        1.2%          0.5%             -3.5%
     Office          151.32        4.5%         -1.0%             16.0%
     Retail          161.80        0.9%          1.4%             15.1%
     Warehouse       158.39        1.2%          1.0%             10.6%
     Desert Mountain
       West          154.45        0.0%          0.8%              8.6%
     Mid Atlantic
       South         150.42       -0.5%          2.4%              1.9%
     Midwest         128.41        0.7%         -0.4%              6.3%
     Northeast       147.68        3.5%         -0.7%              7.1%
     Pacific West    156.64        2.7%          0.6%              8.2%
     National        148.20        2.1%          0.2%              6.6%
     Source: Standard & Poor's
     Date through June 2007
     Mimicking last month's results, the National composite reported
 positive annual returns of 6.6% versus June of last year. The strongest
 regional return was in the Desert Mountain West, with an annual rate of up
 8.6%. In the property sector, Offices surpassed Retail this month, yielding
 a 16.0% annual rate of return versus 15.1%, respectively. Apartments are
 the weakest property sector, exhibiting a return of -3.5% on a
 year-over-year basis, but showed a slight improvement in both the
 June-over-May and the May-over-April numbers. The 3.5% annual decline in
 the Apartment sector is weaker than last month's reported 2.2% decline,
 however, indicating that the monthly increases in May and June may only be
 due to seasonality. Monthly returns for the National index were +2.1% in
 June. Of the nine property type and regional indices eight reported
 positive returns in June compared to six in May.
     "Prices in most regions and sectors appear to be increasing on an
 annual basis in the commercial real estate sector," says David Blitzer,
 Managing Director and Chairman of the Index Committee at Standard & Poor's.
 "However, these gains appear to be joining the residential market in their
 shrinking returns. While year-over-year returns at the national level
 stabilized at 6.6% in June, the same as May's annual returns, some areas
 are showing some real diminishing annual returns, most notably the
 Apartment sector and the Desert Mountain West and Mid Atlantic South
     The S&P/GRA Commercial Real Estate Indices are published on the second
 to last Tuesday of each month at 9:00 am ET. They are calculated to reflect
 underlying real estate and capital market fundamentals by measuring the
 change in commercial real estate prices by property sector and geographic
 region. Reported index values are based on a three-month rolling average
 transaction price per square foot, and are computed using a stock value, or
 market capitalization-weighted, methodology. This approach utilizes average
 transaction prices per square foot and commercial real estate stock data to
 derive index levels.
     To be eligible for inclusion, property sales must be identified as
 closed transactions in the defined commercial real estate regions and
 sectors. Closed commercial transactions are those where the escrow has
 closed and the title has been transferred to the new owner. There are no
 transactions included in the index that are appraisals, just listed, sales
 pending, or in escrow.
     The indices are maintained and published under agreements between
 Standard & Poor's and GRA/Charles Schwab Investment Management (CSIM).
     About Standard & Poor's
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SOURCE Standard & Poor's