A new report showed that increased demand for apartments has helped to drive commercial real estate prices higher.
Moody's Investor Services reported that the commercial real estate sector saw prices increase a record 4.3 percent in September from the previous month and 0.3 percent from a year earlier. Property prices by type, which were measured quarterly, showed that a rise in the number of landlords signing tenants to lease agreements helped drive apartment prices up 0.4 percent from the previous quarter and 15.5 percent from a year earlier.
It was a reversal of recent trends, which had seen commercial prices decline.
"Each of the summer months this year recorded declines in the 3 percent to 4 percent range, followed by this month's sizeable uptick," said Moody's managing director Nick Levidy.
The data backed up a separate report which also credited rental demand with driving up commercial prices. Last week, IPD reported that commercial values rose 3.2 percent in the third quarter, according to HousingWire.