From Sperry Van Ness Accelerated Marketing | John Johnson, CCIM - CRE prices continue to fall, with retail suffering more than other sectors. Ripple effects will continue to be felt, as many current owners want to sell this year, due to higher tax rates after 2010. With so many properties coming to market, one would assume continued downward pressure on prices. From Bloomberg.com:
U.S. commercial real estate prices fell the most in almost a year in June as the economic recovery showed signs of faltering, Moody’s Investors Service said.
The Moody’s/REAL Commercial Property Price Index dropped 4 percent from May, the company said today in a report. The decline was the biggest since July 2009, and pushed the gauge down 0.9 percent from the start of the year.
“We expect property prices to remain choppy for some time as commercial real estate markets and the broader economy continue their slow recovery from the recession,” Moody’s researchers said in the report.
High unemployment and concern over slowing economic growth are hampering a price rebound for offices, apartments, industrial and retail properties, Moody’s said. U.S. gross domestic product expanded at a estimated 2.4 percent annual pace in the second quarter, less than economists forecast and slower than the 3.7 percent rate in the previous three months.
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