US Retail Property Prices Posted an Annual Drop of Over 20% in Q2 2009
The trend registered in the second quarter of 2009 represents an acceleration of the annual rate of decline of 18.8% that was registered in the first quarter of 2009. The historical quarterly data provided by RCA start from Q1 2004 and end in Q2 2009. During this period, the average US retail property price involving transactions of $5 million or more peaked in Q2 2008 at $230 per square foot. The lowest average price recorded during the period covered by the data was $129 per square foot and was reported in Q1 2004. The largest annual drop in retail real estate prices over the period Q1 2005 - Q2 2009 was the one that took place in the second quarter of this year. The largest annual increase in US retail property prices over the same period was 18.1% and was posted in Q2 2007, when the average price increased to $196 per square foot from $166 in Q2 2006. The graph below presents historical annual changes in US retail property prices involving transactions of $5 million or more for the period Q1 2005 - Q2 2009, calculated from the historical RCA data.
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