Have Property Values Finally Peaked?

Jay Maddox is a principal at Avison Young.maddox

LOS ANGELES—Have property valuations finally peaked? It was the question on our mind when we sat down with Jay Maddox, principal at Avison Young, for an exclusive interview. Property values have steadily increased since the onset of the last downturn, and cap rates have continued to compress lower and lower. In fact, experts have repeatedly called time, only to see cap rates continue to inch downward. According to Maddox, however, the upward trend may be slowing. He tells GlobeSt.com that some markets are seeing cap rates rise and some softening investor demand. During the interview, we also get his thoughts on rising prices and what to expect in the coming months.

GlobeSt.com: In general, commercial real estate values have been rising since the last recession, what are your thoughts on this trend?