Wednesday, January 20, 2010

Commercial Real Estate Price Blip or Bottom?

Even after a 1% jump in the commercial real estate index in November, Calculated Risk details how far prices have fallen:

CRE prices peaked in late 2007 and have fallen 43% from the peak and are now back to September 2002 levels.
September 2002 levels in nominal terms, but pre-index (December 2000) prices in real terms (the REAL in the title is not "real").

With everything going on in the broader economy (i.e. vacancy rates), lack of financing, and new properties still coming to market, I must agree with Calculated Risk that this is just a blip.

Source: MIT

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