There was decline on multifamily, office and industrial volatility scores across both primary and secondary markets, while retail market volatility was mixed. Primary retail market volatility fell 5 basis points, while secondary retail market increased 11 basis points in 2005. Hotel volatility also rose 9 basis points in 2005, with much of the increase being driven by increased volatility in secondary markets.

The report also showed that the primary multifamily volatility declined 35 basis points and primary office volatility declined 16 basis points. New Orleans was the only primary multifamily market that experienced greater volatility. Lower volatility scores were recorded for primary office markets including Orlando, Jacksonville and Austin.

By M. Sese
http://realestatepress.org