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 www.spcrex.standardandpoors.com. 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 regions." 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 Standard & Poor's, a division of The McGraw-Hill Companies (NYSE: MHP), is the world's foremost provider of financial market intelligence, including independent credit ratings, indices, risk evaluation, investment research and data. With approximately 8,500 employees, including wholly owned affiliates, located in 21 countries, Standard & Poor's is an essential part of the world's financial infrastructure and has played a leading role for more than 140 years in providing investors with the independent benchmarks they need to feel more confident about their investment and financial decisions. For more information, visit http://www.standardandpoors.com.
SOURCE Standard & Poor's