Commercial real estate prices in the USA rose by +1% in November 2009, the first price increase since September 2008, according to Moodys/ReaL Commercial Property Price Indices (CPPI).

Despite this increase, Moody’s believe that prices will start to fall again in the next few months as yields rise and occupancy and rental rates continue to fall.

Nick Levidy, Moodys managing director, said: "The positive +1% return recorded in November represents a bit of good news for the commercial real estate market, but the sector is not yet out of the woods,

"We anticipate further deterioration in property fundamentals and increases in cap rates, although the worst of the value declines is likely over."

It expects US commercial real estate prices to effectively fall -45-55% from their peak prices which were reached in 2007. With the incremental rise, prices have fallen -43% as of November 2009.