April 30, 2018
Ten-X Commercial’s Commercial Real Estate Nowcast reveals pricing rose 0.1% in April, the index’s third consecutive monthly gain. Despite the slight uptick, the Ten-X CRE Nowcast posted a 1.4% decline compared to April 2017, the first time the index has seen a year-over-year decline since its inception.
Ten-X Chief Economist Peter Muoio says, “A pricing drop compared to 2017 is a clear indication that successive interest rate increases and stock market volatility are having a negative effect on commercial real estate investor sentiment. Additionally, many investors are cognizant of the extraordinary long age of this economic cycle and preparing for the possibility of a downturn.”
April’s pricing gains in the office and retail sectors were enough to offset declines in the industrial and hotel property segments. The year-over-year industrial pricing decline deepened to 5.1%, the worst annual performance of any sector. Apartment pricing remaining unchanged compared to March.
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