Pricing Growth ‘Remains on Track’

“Investors may be looking past nearer-term cyclical deterioration” in apartments and instead focusing on “the strong long-term social and demographic trends,” says Ten-X’s Peter Muoio.

IRVINE, CA—Commercial property valuations have posted their strongest monthly increase so far this year, according to the latest Ten-X Commercial Real Estate Nowcast, issued Thursday. Values increased by 1.9% in August even as deal volume slowed, for a 6.4% increase year over year. The report also shows increases across all property types for the first time since late 2015.

“The recent string of monthly increases in commercial real estate valuations confirms that pricing remains on the upswing following the weakness seen earlier this year,” says Peter Muoio, chief economist at Ten-X. “The strength displayed across our nowcasts this summer is an important signal to real estate investors that despite the array of global challenges and the heightened uncertainty brought about by the US presidential election, commercial real estate’s pricing growth remains on track.”