In the second quarter of 2009, US industrial property prices for transactions of $5 million or more, registered a year-over-year decline of over 10%, according to data provided by Real Capital Analytics (RCA) and published by Mortgage Bankers Association (MBA).
In particular, the non-seasonally adjusted average industrial property price involving transactions of $5 million or more decreased to $64 per square foot in the second quarter of 2009 from $72 per square foot in the second quarter of 2008, representing a year-over-year drop of 11.1%. This was the largest year-over-year decrease since the first quarter of 2005, which marks the beginning of the period for which historical annual changes can be calculated from the data published by MBA.
The quarterly industrial real estate prices provided by RCA start from Q1 2004 and end in Q2 2009. During this period, US industrial real estate prices involving transactions of $5 million or more peaked in Q3 2007, when they averaged $80 per square foot.
The lowest average price recorded during the period covered by the data was $51 per square foot and was registered in Q2 2004.
The largest year-over-year increase of 24.6% was recorded in Q2 2006 when the average industrial real estate price increased to $76 per square foot from $61 in Q2 2005.
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