Commercial Real Estate Prices
I have read several articles over the past few weeks stating that Commercial Real Estate (CRE) prices are increasing, so I figure it's now time to start commenting. Here is a link to a Calculated Risk post (scroll down) about a Moody's report that CRE prices increased 1% in January. Overall, CRE prices are 40% off their 2007 high, and near 2003 levels. I have not seen this article yet, but am waiting for the article equating the increase in CRE prices to an increase in available financing. Commercial Mortgage Backed Securities (CMBS) are staging a slow comeback that will make for more non-distressed transactions. Real estate always has and always will be a finance game - if affordable debt is available, there will be buyers and sellers. Low interest rates and an improving economy are also signaling that a bottom has passed in CRE prices.