Commercial Property Sounds The Alarm
Posted By thestatedtruth.com on August 19, 2010
The Moody’s/REAL Commercial Property Price Index dropped 4 percent from May, the company said today in a report. The decline was the biggest since July 2009, and pushed the gauge down 0.9 percent from the start of the year.  The Moody’s index is down 41 percent from its 2007 peak, having gained 4.2 percent from the seven-year low set in October.
High unemployment and concern over slowing economic growth are hampering a price rebound for offices, apartments, industrial and retail properties, Moody’s said. U.S. gross domestic product expanded at a estimated 2.4 percent annual pace in the second quarter, less than economists forecast and slower than the 3.7 percent rate in the previous three months.
The value of malls and shopping centers fell almost 11 percent in the second quarter, the biggest drop of any commercial property type tracked in the Moody’s index. Apartments and offices values both gained about 4 percent, while industrial properties dropped 2.9 percent.
More at: http://www.bloomberg.com/news/2010-08-19/retail-spaces-lead-biggest-drop-in-u-s-commercial-property-prices-in-year.html     Â
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