Have Commercial Real Estate Prices Bottomed Out?
As we have been writing over the past 3 or 4 weeks, there are more and more signs and reports that commercial real estate prices may be at or very near to the bottom. Perhaps the election results will also have a positive effect on commercial real estate. The latest report comes from CoStar, offering:
Investment grade real estate continued its positive trend from August with a strong 5.48% increase in September, according to CoStar Group’s newly released Commercial Repeat-Sale Indices (CCRSI).
Also, for the first time since the second quarter of 2007, all four primary property types within the commercial real estate repeat sales index (office, retail, industrial and multifamily) showed an increase in pricing in the third quarter.
The CoStar investment grade real estate index remains down 4.89% from the same period last year, and down 29.08% from two years ago. However, for the third quarter, the investment grade real estate index increased 5.46%. This is a significant reversal from the previous quarter, as the investment grade real estate index was down 3.24%. The CoStar investment grade index is therefore showing positive price movement quarter over quarter.
For links to CoStar for the full report, click HERE. What do you make of the increasing reports pointing towards a stabilization? Is this what you are seeing in your market place?
Tags: assets, commercial, Commercial Real Estate, cre, economic forecast, economy, industrial, market reports, market value, multifamily, national, office, pricing, properties, property index, real estate, reports, retail
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