Tuesday, August 6, 2013

U.S. Commercial Property Prices Fall Amid Rising Rates via Bloomberg

U.S. commercial property prices fell 1 percent in July from the previous month as rising interest rates increased the cost of financing deals, according to real estate research firm Green Street Advisors Inc.

The Green Street Commercial Property Price Index was 4 percent higher than a peak reached in August 2007 even with the decline, the Newport Beach, California-based company said today in a report. The gauge is based on Green Street’s estimate of the value of real estate investment trust portfolios, which tend to have high-quality properties.

“Property values have enjoyed a robust recovery over the last four years, more than recouping all the ground that was lost during the financial crisis,” the firm said in its report. “That recovery has been put on hold for the time being as increases in interest rates weigh on pricing.”

Read more...U.S. Commercial Property Prices Fall Amid Rising Rates - Bloomberg

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