Commercial property prices steady but may rise this year
Commercial property prices in the U.S. are mostly holding steady, analysts said, though some apartment buildings and shopping centers are appreciating.
Prices for such buildings as warehouses and offices have been relatively steady since last summer after a sharp two-year rally saw them rebound to within 10% of their all-time highs, according to Green Street Advisors Inc. of Newport Beach
“With the exception of apartments and high-end malls, we haven’t really seen values go anywhere in almost a year now,” analyst Peter Rothemund said.
Values of multifamily residential properties have been strongest and have surpassed prior highs, while lodging and office properties are furthest from their 2007 peaks, according to Green Street.
The firm’s overall commercial property price index, which tracks transactions, inched up 1% in March. Prices could increase more in coming months, Rothemund said. “Signals from capital markets … are pointing in that direction.”
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