As many experts have been predicting for months, the commercial real estate market is suffering deep declines in prices. Moody’s Investor services reported Monday that sales volume remains low. The Moody’s/REAL Commercial Property Price Indices (CPPI) Beach Kings buy released on September 21st showed a “Steep decline” of 5.1%. Since its peak in October of 2007, the CPPI has slid 39 percent.
According to Bloomberg, many experts are predicting that commercial sales will fall to an 18 year low this year. This comes as no surprise as the commercial market mirrors the US Economy. The Moody’s Report indicates that commercial prices in the south have seen some of the steepest declines. In the Sarasota real estate market, we are seeing more vacancies on commercial properties including office, retail and industrial spaces. The commercial slump can be attributed to the weak economy, tight financing and declining property values.
Many economists believe we are looking at a long, slow recovery. However, there is some light at the end of the tunnel. Economists for the Conference Board believe that the U.S. Recession is bottoming out after its fifth straight month of increase in leading economic indicators. “These numbers are consistent with the view that, after a very severe downturn, a recovery is very near,” said Ken Goldstein, economist for the Conference Board. порно скочать бес платно
John, Chicago has taken a huge hit in the commercial market. Industrial sales compared to last near were down 81%, which is not nearly as bad as office and retail.
I dont do many commercial deals but from last months stat from our Board of Realtors in the Dallas/Fort Worth market, our numbers have dropped drastically.