Standard & Poor's Announces February Results of the S&P/GRA Commercial Real Estate...

Standard & Poor's Announces February Results of the S&P/GRA Commercial Real
Estate Indices (SPCREX(TM))

NEW YORK, May 20 /PRNewswire/ -- Standard & Poor's today announced the
February results for the S&P/GRA Commercial Real Estate Indices. The indices
measure the change in commercial real estate prices by property sector and
geographic region in the United States. The S&P/GRA Commercial Real Estate
Indices comprise ten commercial real estate indices: a national composite,
five geographic regions, and four national property sectors.
The table below summarizes the results for February. More than 14 years of
monthly history for these data series is available and can be accessed in full
by going to www.spcrex.standardandpoors.com.

February 2008 February/January January/December 1-year
Index Level Change(%) Change(%) Change(%)
Apartments 147.56 -1.3% 0.6% 6.7%
Office 145.99 -1.9% -0.2% 3.8%
Retail 161.45 0.8% 0.0% 4.3%
Warehouse 160.51 -0.7% 1.9% 8.6%
Desert
Mountain West 150.67 0.3% -2.9% 0.3%
Mid Atlantic
South 153.98 1.1% -0.3% 4.7%
Midwest 131.36 0.0% -0.4% 3.1%
Northeast 146.59 -2.4% 1.4% 4.2%
Pacific West 163.53 -0.9% 0.3% 9.4%
National 150.40 -1.0% 0.3% 5.5%

Source: Standard & Poor's
Data through February 2008

The National composite reported an annual price appreciation of 5.5%,
versus February of 2007, down from the +7.0% reported in January's data. This
remains significantly lower than this cycle's peak of +14.5%, reported in June
of 2006. The five regions reported mixed results. Two of the regions reported
positive monthly returns while three regions reported negative returns. The
National composite was also negative, down 1.0% in February versus January.
After reporting the highest return in the January/December period, the
Northeast reported the largest price decline in the February/January period,
-2.4%. The region which performed the best during the February/January period
was the Mid Atlantic South, +1.1%. Over the past twelve months, the Pacific
West has the highest return of 9.4%, at least double the return of any other
region over the one-year period.
In the property sector, Retail reported the biggest gain for the one-month
period and Warehouses continued to report the highest 12-month return. Retail
was the only sector to have a positive return in the February/January period,
+0.8%. Office reported the largest monthly decline, -1.9%, and has the lowest
return over the past 12 months, +3.8%.
"Overall, the results for commercial real estate was mixed for the month.
The National Index was slightly negative, returning -1.0%. The sectors and
regions of the market that performed the best for the month are ones that have
been relative laggards over the past 12 months," says David Blitzer, Managing
Director and Chairman of the Index Committee at Standard & Poor's. "In the
property sector Retail was the star performer during the February/January
period, up 0.8%, while the region that performed the best was the Mid Atlantic
South, up 1.1%. Over the past 12 months, Warehouse and the Pacific West have
been the strongest performers, with annual growth rates of +8.6% and +9.4%,
respectively. We will keep our eyes on the Apartment sector over the next few
months, as we have observed what could prove to be a turnaround in this
sector. Their annual growth rate is currently registering +6.7%, off of a
recent low of -3.5%, reported in June of 2007."
The S&P/GRA Commercial Real Estate Indices are published on the second to
last Tuesday of each month at 9:00 am ET. They are calculated to reflect
underlying real estate and capital market fundamentals by measuring the change
in commercial real estate prices by property sector and geographic region.
Reported index values are based on a three-month rolling average transaction
price per square foot, and are computed using a stock value, or market
capitalization-weighted, methodology. This approach utilizes average
transaction prices per square foot and commercial real estate stock data to
derive index levels.
To be eligible for inclusion, property sales must be identified as closed
transactions in the defined commercial real estate regions and sectors. Closed
commercial transactions are those where the escrow has closed and the title
has been transferred to the new owner. There are no transactions included in
the index that are appraisals, just listed, sales pending, or in escrow.
The indices are maintained and published under agreements between Standard
& Poor's and GRA/Charles Schwab Investment Management (CSIM).
About Standard & Poor's
Standard & Poor's, a division of The McGraw-Hill Companies (NYSE: MHP), is
the world's foremost provider of financial market intelligence, including
independent credit ratings, indices, risk evaluation, investment research and
data. With approximately 8,500 employees, including wholly owned affiliates,
located in 23 countries, Standard & Poor's is an essential part of the world's
financial infrastructure and has played a leading role for more than 140 years
in providing investors with the independent benchmarks they need to feel more
confident about their investment and financial decisions. For more
information, visit http://www.standardandpoors.com.
SOURCE Standard & Poor's

David Blitzer Chairman of the Index Committee Standard & Poor's
+1-212-438-3907 david_blitzer@standardandpoors.com OR David Guarino
Communications Standard & Poor's +1-212-438-1471
dave_guarino@standardandpoors.com