2017 Pricing Wariness Continues in New Year

As this year progresses, “we’ll be looking to see if recent tax cuts and strong economic fundamentals bring CRE pricing back up to positive gains,” says Muoio.

IRVINE, CA—The Ten-X Commercial Real Estate Nowcast has now made it nine for nine, with the monthly pricing index—based on Google Trends and Ten-X’s own data—reflecting a further contraction in January and continuing an unbroken streak that began last May. Only office registered positive movement in values for the month, and overall CRE pricing is up just 1% from a year ago.

“The further declines in January demonstrate that commercial real estate investors continue to be wary,” says Peter Muoio, chief economist with Ten-X. “With pricing gains across all segments remaining at just 1% in 2017, we’ll be looking to see if recent tax cuts and strong economic fundamentals bring CRE pricing back up to positive gains throughout 2018.”