Values Inch Up, Led by Apartments

“it appears the market may continue to stall until more clarity emerges,” says Muoio.

IRVINE, CA—Commercial property values have increased since last fall’s surprise election of Donald Trump, but have done so more slowly. Ten-X says its latest Commercial Real Estate Nowcast shows that valuations increased just 0.1% over the course of the previous month. They’re up just over 0.5% since November, according to Ten-X’s monthly pricing index, which combines which combines the firm’s proprietary transaction data with Google Trends data and investor surveys.

“Now four months removed from the presidential election, commercial real estate valuations remain in a lull as investors await more certainty on both the economy and the potential for sweeping federal policy changes,” says Peter Muoio, chief economist with Ten-X. “As the Fed signals a series of rate hikes to come and key economic proposals stall in Washington, it appears the market may continue to stall until more clarity emerges.”