CoStar News reports that Investment grade transactions are up 54% in January over a year ago, but dipping slightly from December. The increase reflects buyers’ appetite for investment grade office, retail, hotel, and apartment properties. General grade is down 1% from January last year. The investment grade increase hit a five year high, which illustrates how hard the market fell over the last two years and how quickly its coming back.
“Pricing is all relative,” said Chris Macke, CoStar senior real estate strategist. “The fact that January’s reading was negative on a monthly basis but the largest gain since 2006 on a year-over-year basis indicates how fast the index was falling a year ago — and how much it has improved since then.”
CoStar tracked $211 billion in transactions in 2010, which was up 79% over 2009.