October 3, 2017
The commercial real estate sector continued its slump in September, with nationwide commercial pricing edging down by 0.1%. It is the fifth consecutive month of contraction for the index, according to Ten-X’s latest CRE Nowcast.
Ten-X Chief Economist Peter Muoio says the, “…decline in September indicates the market has again failed to shake off its malaise, as a murky business cycle prognosis and tightening monetary policy continue to take their toll.”
The nowcast’s annual growth rate is at its lowest level since Ten-X introduced the index, and several CRE sectors are in similar slowdowns. While there is something of a varied picture across the five CRE segments, there is “no denying the overall softening of commercial real estate pricing,” points out Muoio.
With this ongoing softness in the market, pricing across CRE is just 4.4% higher than its year-ago level. Noteworthy during September was the weakness of the apartment sector, which declined by 0.3%, the segment’s third straight monthly decline after a strong run-up earlier this year.
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