March 27, 2017
Commercial real estate valuations increased by 0.1% in March 2017, continuing the sluggish trend that has been occurring since November 2016. Though commercial real estate pricing grew 8.4% during a 12-month period, “the robust growth that characterized most of 2016 has now entered a prolonged slump, coinciding with the presidential election and federal interest rate hikes,” according to Ten-X research.
The apartment sector posted a 1.2% gain in March, and a 15.4% increase over the past 12 months. Industrial eked out a 0.2% increase, marking the second straight month of growth for the sector. Office (-0.1%), retail (-0.3%) and hotel (-1.0%) continued declining from month to month.
Said Ten-X’s chief economist Peter Muoio. “As the Fed signals a series of rate hikes to come, and key economic proposals stall in Washington, it appears the market may continue to stall until more clarity emerges.”
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