A Drop Towards US Commercial Property Prices To Levels Last Felt In 200

According to Moody’s Investors Service, the commercial real estate prices  dropped again in August to the lowest point from the beginning of the slump.

They added that the commercial property price index dropped 3.3% in August and have now reduced from 3% to 4% for three consecutive months to level below the previous October 2009 record lows.

Moody’s states CRE prices are now off 45.1% from a high in October 2007, drop 7.6% this year and at levels last felt in 2002.

According to Moody’s managing director, Nick Levidy “the commercial real estate market in the United States has become trifurcated with values rising for performing trophy assets sited in major markets, dropping shaprly for distressed assets and basically remaining flat for smaller healthy properties.

In 2009 there were few troubled sales and performing properties from the CPPI.  During the decline however, the figure of troubled properties has climbed up creating an increased weighting of the CPPI towards disturbed properties that have has a great negative rates of return, Levidy added.

Since December of 2000, the Moody’s commercial real estate prices are at the moment is 19% under the consumer price index yet analysts anticipate to relapse to a long-term movement line close to that of the CPI.

Possibly Related:

1. Housing Prices Start a Ricochet in Kansas City
2. REOs drop in the middle of ‘robo-signing’ stall
3. Foreclosures thrust home prices downhill in many cities