Commercial Real Estate Prices Surpass the Bubble

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On the national level, commercial real estate prices are officially higher than they were in 2007; at the peak of the market before the crash.  According to Jim Costello, RCA’s senior vice president, 70% of increase in sales prices are due to declining capitalization rates. 

The increase in sales prices is led by multifamily and office buildings in Central Business Districts. 

According to Moody's report, the index is 1.6% higher in August and 15.2% higher than August 2014.  Furthermore, this is 1.5% higher than the peak of commercial market in 2007.

Harrisonburg and Rockingham County

• In 2007, there were 24 commercial sales.  Thus far in 2015, there have been 22 commercial sales.  This is an 8% decrease but the year is not yet complete. 
• In 2007, the median sale price was $361,000.  Thus far in 2015, the median sales price is $367,500. This is a 2% increase.
• in 2007, the median days on the market was 177.  Thus far in 2015, the median days on the market is 91.  This is a 49% decrease. 

​Sources:  Scotsman Guide and Local MLS