US office property prices for transactions of 5 million or more, posted a year-over-year decline of over 45% in the second quarter of 2009, according to data provided by Real Capital Analytics (RCA) and published by Mortgage Bankers Association (MBA).
Specifically, the average office property price involving transactions of $5 million or more dropped in the second quarter of 2009 to $144 per square foot from $286 per square foot in the second quarter of last year, representing a year-over-year drop of 49.7%. This was the largest year-over-year drop in average quarterly prices since the first quarter of 2004, the beginning of the historical annual changes that can be calculated from the data published by MBA.
The historical quarterly office real estate prices provided by RCA start from Q1 2003 and end in Q2 2009. During this period, US office real esate prices involving transactions of $5 million or more peaked in Q2 2007, when they averaged $294 per square foot. That was also the quarter during which US office real estate prices posted the largest year-over-year increase of 34.9% since Q1 2004.
The lowest average price recorded during the period covered by the data was $137 per square foot and was reported in Q2 2003.
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