From the New York website:
Citing a continuing slowdown in both transaction volume and value appreciation,
Green Street Advisors’ national index of U.S. commercial property values fell
slightly in March to the tune of less than one-half percent, the real estate
research and advisory firm said this week.
As in previous reports, Green Street
noted that capitalization rates “have flattened out over the past few months,”
corresponding with property appreciation having “slowed materially from the
pace of last year” and a related decline in transaction activity.
Though the
current commercial real estate cycle has seen property values eclipse their
pre-recession peak in 2007, according to Green Street, the slight decline in
the national property index feeds into previous forecasts that the cycle may
reach its conclusion in 2016. But despite indicators playing into that
narrative, Green Street senior analyst Peter Rothemund said that property
values at large “appear to be holding their ground” thanks to financial and
securities markets that have stabilized.
“Though that seemed an unlikely
proposition a month or two ago, the rally in the financial markets and the
return of some normalcy to the [commercial mortgage-backed securities] market
have helped property pricing,” Rothemund said. Green Street’s Commercial
Property Price Index remained up 8 percent year-on-year in March and 23 percent
above its previous peak in August 2007.
Original content The Real
Deal
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