Strong developer demand for apartment sites propelled a 3.6% gain in commercial land prices, traditionally a slower segment of the market.
Investment momentum appears to be shifting towards a market dominated by smaller, less-expensive properties.
Construction and multifamily redevelopment increased significantly in 2012. However, the multifamily sector experienced only a 1.4% gain in the fourth quarter, the lowest percentage increase among all major property types. At the same time, annual pricing gains for the apartment sector outpaced all others.
Read More: CRE Sales Surge in 2012 as Pricing Recovery Spreads to More Markets [CoStar]