On the bright side, last week, the Moody‟s/REAL All Property Type Aggregate Index showed a 3.6% increase in commercial property prices in May. And even brighter: This is the second consecutive monthly increase. But prices are still down 38.9% from their peak in 2007. And Moody's is quick to warn,

We expect commercial real estate prices to remain choppy in the coming months. The positive news of increasing prices over the past two months is tempered by low transaction volumes, forecasts for slowing macroeconomic growth and the rising risk of a double dip recession.

Maybe the US commercial real estate market is turning around. Prices as measured by Moody’s/REAL Commercial Property Price Indices (CPPI) increased 3.6% in May. It was the second monthly increase in a row, after a 1.7% rise in April.

"We expect commercial real estate prices to remain choppy in the coming months,” said Moody’s Managing Director Nick Levidy.