Values in Hotel, Retail Temper CRE Price Gains

“The commercial real estate space still shows a healthy upward pricing pattern,” says Chris Muoio.

IRVINE, CA—Month-over-month declines in hotel and retail valuations held commercial property’s overall pricing increase to 0.8% for September, Ten-X said Friday. Overall valuations for commercial real estate are up 6.7% from the year-ago period, notwithstanding the contraction in lodging and retail.

“The commercial real estate space still shows a healthy upward pricing pattern, though the market has been unable to keep up with the trends we reported in August, when we saw increases across all five property segments,” says Chris Muoio, senior quantitative strategist at Ten-X. “While a moderation in growth from the summer’s torrid pace was to be expected, the continued softening of the hotel and retail sectors—which we’ve been tracking all year—is worth monitoring for investors.”