Commercial property prices stay flat in October
Commercial real estate values have risen substantially since the trough of 2009 but remained flat in October, an industry analyst said.
Properties such as office buildings, warehouses, apartment complexes and malls have increased in value by more than 45% from the bottom of the market in 2009, according to Newport Beach-based Green Street Advisors Inc. That means that three-quarters of the decline in values that occurred as the market went down between 2007 and 2009 has been erased.
Prices are back to where they were in late 2006, about 10% below their all-time highs.
“After enjoying a robust two-year recovery, property prices have effectively gone into a stall over the last six months,” said Mike Kirby, director of research at Green Street. “Some of the factors that have been fueling the impressive recovery in values have taken a turn for the worse, including the economic outlook and capital availability.”
-- Roger Vincent
Photo: Commercial buildings in Kansas City. Credit: Kansas City Convention & Visitors Assn.