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US commercial prices drop

Thursday, September 02, 2010

Source: Catherine Deshayes

US commercial property prices have dropped to nearly half the levels seen at the height of the real estate boom, meaning savvy investors looking for Florida property could bag a bargain...  

The latest commercial property price index from Moody's found that nationally, prices dropped by 9.1 per cent in June compared to the previous year.

The rate also dropped 0.9 per cent over the first half of the year.  Moody's managing director Nick Levidy said that the price falls may help meet rising demand.

"The increase in dollar volume in each of the past two months, taken together with this month's 43 per cent increase in the number of repeat sale transactions, may be an early indication that buyers and sellers are starting to agree on market-clearing prices.   

"If this is in fact occurring, we would expect transaction volumes to rise steadily and price volatility to ebb in the months to come," he added.  

Earlier this month, DTZ's Fair Value Index highlighted that US prime commercial property is very fairly priced compared to that in Europe and the Asia Pacific region.

Source:www.propertyshowrooms.com