Commercial Real Estate Prices Down 41% From The Peak

November 1, 2009

Commercial Real Estate

Commercial Real Estate prices have dropped, but they are still lagging behind the residential market, so we still have not hit the bottom.

The Moody’s/Commercial Property Price Indices fell 3 percent in August from July, bringing the market’s decline to almost 41 percent since its peak in October 2007, Moody’s Investors Service said in a statement today.

“We can’t call a bottom at this point, but it’s an encouraging sign to see the deceleration in the decline of the Commercial real estate prices,” said Connie Petruzziello, a Moody’s analyst and co-author of the commercial property price report.

August was the 11th consecutive month the commercial property index fell.

The August report was based on prices for 73 properties that sold during the month and for which Moody’s has previous price records.

From the CalculatedRisk blog, commercial real estate prices vs. residential real estate prices since 2001:

commercial real estate prices and commercial real estate investing

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