A glimmer of CRE hope

By Geert De Lombaerde Posted on November 3, 2009 at 9:46 am

Prices for commercial property rose more than 4 percent last quarter, meaning the cratering of the market some are fearing may not materialize.

The TBI tracks the prices that institutional investors, such as pension funds pay or receive when buying or selling commercial properties such as shopping centers, apartment complexes and office towers.

The price index at the third quarter stood at 36.5 percent below its 2007 peak, up from its 39 percent deficit seen last quarter, which now could be the trough and suggests the U.S. commercial property market may have finally found a price bottom.

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Tags: commercial real estate, economic indicators, MIT Center for Real Estate