• There is an all-time high in commercial property prices, according to Green Street Advisors. The price index in July was unchanged from the record-high set in June. It is up 6.0 percent from one year ago and up a whopping 76 percent from the cyclical low five years ago.
• For those who took the plunge to buy during the scary times in 2009, the returns on their investments have been quite spectacular. Warren Buffet’s adage – “buy when others are fearful and sell when others are greedy” – appears right-on regarding recent cycle of commercial real estate. But given the likely rising interest rate environment, the opportunities for further price gains could be limited. That is, there will be less chasing of yields and chasing after commercial real estate if alternative investments like the U.S. Treasury offer higher interest rates.
Read more...Latest Commercial Property Prices: July 2014
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