properties owned by U.S. real estate investment trusts, increased 2% in May and is now 6% below
the high it hit in 2007. Values have now risen 53% since the firm’s Commercial Property Price Index
hit its trough in May 2009. But most of that rise took place between then and the first half of 2011.
The index has only risen 5% in the last 12 months, according to the firm. Lower-quality commercial
property in weaker locations has seen less price appreciation since the downturn hit, according to
analysts Green Street. Demand has been strong among institutions for high-quality commercial
properties with steady cash flows because such assets are viewed as relatively safe investments,
while their yields are attractive in a low interest rate environment.