Based on 885 repeat property sales in March and more than 100,000 repeat sales since 1996, the CCRSI offers the broadest measure of commercial real estate repeat sales activity. Also, this release includes First Quarter 2012 sub-index results by property type and by region.

May 2012 National Results Highlights

PRICES RECOVER TO MID-2003 LEVELS: The U.S. Composite Index ended the first quarter of 2012 4.3% above the same period in 2011. Despite commercial property prices remaining generally flat in March, prices have recovered to mid-2003 levels, but are still 34.5% lower than the peak levels in 2007.

NON-CORE PROPERTIES GAIN: Improving market fundamentals and liquidity continue to bolster the recovery of non-core properties. The U.S.General Commercial Index continued its upward trend and gained 3.7% since it bottomed a year ago. Unlike the pricing volatility seen in the Investment Grade Index, the recovery of General Commercial Index has been slow but steady.

SEASONALITY CONTRIBUTES TO INVESTMENT-GRADE VOLATILITY: Seasonality continues to be most evident in the investment grade segment of the market. In each of the past three years, the Investment Grade Index has experienced a significant first quarter pricing decline following a proportionate pricing increase in the fourth quarter of the previous year. These year-end pricing spikes have been consistent with elevated transaction volume as investors rush to close deals prior to January 1,while the first-quarter declines have coincided with a return to normal trading activity. Macroeconomic shocks in 2010, 2011 and 2012 have also contributed to the recent 'Spring Slumps' in pricing. This volatility is a normal and expected occurrence, and should not be interpreted as a regression in real estate prices. Despite the most recent decline, the Investment Grade Index remains 8.2% above year-ago levels.

SALES VOLUME UP YEAR-OVER-YEAR: An active March capped off a busy quarter in the investment markets. Composite pair volume in the first quarter totaled $12.3 billion, much lower than the fourth quarter of 2011's total (as expected), but 38.7% above the first quarter of 2011's total. Both investment grade and general commercial segments were heavily traded in March. Total investment volume in each exceeded their two-year monthly averages by wide margins, reflecting ongoing improvement in investor sentiment.

DISTRESS LEVELS DECLINING: Distress has been generally declining as a percentage of property sales volume over the past 12 months. Only 23.5% of observed trades in March were distressed, a level notably lower than the 28.6% observed over the past three years. An elevated level of distressed property sales is expected to remain for several more years, but rising rents and occupancies should keep its share of the total sales volume trending down.