While the data from the top tier of the market has been strong - with strong sales comps in Washington D.C. and New York office properties. The most recent Moody's/MIT release reminds us that there are still significant challenges in distressed markets. The index declined 2.4% in February:
Recent months have seen very low volumes and since there are few seller but for distress (in the February index fully 1/3 of the transactions were considered distressed) these transactions weigh on the index. Interestingly Moody's notes in their release:
While interest in high quality properties appears to be picking up. Transaction activity the core of the commercial real estate market remains muted.
This is consistent with what we have been seeing.