Starting in 1996q1, the FOF index level is computed by first averaging for each quarter the monthly values of the Costar U.S. Composite Index Excluding Multifamily: Value Weighted, then computing the quarterly change, and then applying the computed change to the previous FOF index series level. Revisions to the Costar Index going back to 1996q2 are incorporated annually. Series has no flows; data for the most recent ten years show no significant seasonality. Prior to 1996q1, the level index is a weighted-average of three appraisal-based commercial property price per square foot series, office property, retail property, and warehouse/industrial property, from NREI The weights applied to the NREI were calculated using annual data from the SCB September 2012 issue, Table 3, Current-Cost Net Stock of Private Fixed Assets, Equipment and Software, and Structures, by Type; Structures; Nonresidential structures; line 40, Office, including medical buildings; line 41, Commercial; and line 43, Manufacturing. The fraction of office to the sum of the three is the weight applied to the office index. The same procedure is applied, respectively, to the retail and industrial indexes. The weights are not revised. The sum of the weighted indexes is the commercial property price index.
Last edited on: 06/19/2017