Transaction prices of commercial property sold by major institutional investors rose by more than 4 percent in the third quarter of 2009, according to an index developed and published by the MIT Center for Real Estate (MIT/CRE). The 4.4 percent increase in the transactions-based index (TBI) for the third quarter is the first positive price change in the index in over a year. “The big news this quarter is not just that the price index increased, but that transaction volume substantially increased for the second quarter in a row, reflecting the first increase in market sentiment in two years,” said Professor David Geltner, director of research at MIT/CRE. “One quarter does not a trend make, and we are still well below normal trading volume,” Geltner cautioned. “Nevertheless, this is the strongest sign of a bottom that we’ve had in two years,” he added.
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