"From the peak in 2007 to its sale in 2009, the Bertelsmannbuilding has decreased 63% in value—and that's for a trophy NewYork City office building," says Jeffrey Rogers, president and COOof New York City-based Integra Realty Resources, which appraisedthe asset.

As property fundamentals continue to wither, owners can eithersell their depreciated assets or hold onto them until the marketrecovers. But with so few sales to weigh against, those leaningtoward a trade are having a hard time pricing their properties.Even valuation professionals are finding the constraints of themarket challenging. Nevertheless, they are devising creativesolutions to appraise asset values.

Hard Fall
Across the board commercial property values have nosedived 43.7%from peak 2007 levels, according to Moody's/REAL CommercialProperty Price Index. The ratings agency anticipates cash flows onassets with short-term lease structures, such as hotels andmultifamily, will bottom out this year or early 2011, while office,retail and industrial will take longer. Moody's forecasts prices tofall by as much as 55% in coming months.