[IMGCAP(1)]
NEWPORT BEACH, CA-Commercial property prices have virtually remained the same, rising only 1% in November, reports Green Street Advisors Inc., an independent research, trading and consulting firm concentrating on REITs, other publicly traded real estate securities and the private commercial real estate markets in North America and Europe. Property appreciation has slowed to a near standstill over the past several months, as the large increase in interest rates earlier this year has weighed on valuations, according to the firm.
“Property values haven't done much for six months now,” says Peter Rothemund, an analyst at Green Street. “And we're probably in for more of the same. Without the catalyst of super-low interest rates, there's no reason to expect property values to post anything other than inflationary-type gains.”
As GlobeSt.com reported in November, in May, a large increase in interest rates put the brakes on what had been a long-running recovery in property values, according to Green Street.
[IMGCAP(2)]
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.