Categorized | Commercial

Declaring Decline in Commerical Real Estate

Declaring Decline in Commerical Real Estate
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Recently, the famous Moody’s Investor Service   declares a decline in the US commercial real estate prices.  Moody says the prices have fallen to a post recession in the month of March 2011 since the sales of   distressed assets by investors in the US real estate market.

According to Moody’s, the commercial real estate prices have dropped to 4.2% since February up till the recent times. This was far more below what was obtainable in October 2007.

The price fall is actually showing in the major real estate markets like Washington and New York. This is sequel to   the current decline in vacancy rates and the economy.  The price will continue to fall as long as the sale of financially distressed assets continues says Moody’s. According  Moody’s director of  commercial real estate research, Tad Philip,  the price index will continue to  drop as  long as there’s  transactions  going on  concerning  distressed assets.

In any case, the larger real estate markets in New York, Boston, Chicago, Washington, San Francisco and Los Angeles are actually helping the real estate market not to crash in the wake of the decline rocking it today. Efforts are being put in place to ensure better improvement in the real estate sector.

In any case, there’s still strong indication of “No Recovery Signals” says Moody’s.  This is exactly the scenario when looking at the overall index since March.  However, hope is still very alive as the major markets are sure to bounce back to better deals in the near future.

 

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About Drew Wilson

Drew focuses on the Commercial and Mortgage/Finance categories.

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