Commercial property prices rebounding

A new report says that while commercial property prices still haven't made up for all of the value that they lost during the recession, they have rebounded sharply over the past year and a half.

Green Street Advisors says that its Commercial Property Price Index rose by 2 percent in November, continuing a mainly positive trend over the past 18 months.

"Commercial property values are up over 30 percent from the 2009 trough," said Mike Kirby, director of research for Green Street Advisors. "Half of the decline in values that occurred from 2007 to 2009 has been eradicated. Nevertheless, values remain roughly 20 percent shy of their peak."

Kirby added that the market has seen several very large transactions that also reinforce the positive momentum seen in the index. The firm also notes that the CPPI is based on prices that are being negotiated and put under contract, rather than closings, like other indexes. It is also weighted towards higher-value properties.

Other recent reports have also pointed to strength in the Houston real estate market. According to a report last month from CoStar, Houston ranked in the top 10 markets in the country for office, industrial, retail and multifamily property.