December 1, 2017 Comments Off on Ten-X Says CRE Property Prices Decline for Seventh Straight Month Views: 2133 California News, Top California

Ten-X Says CRE Property Prices Decline for Seventh Straight Month

The commercial real estate sector remained in the doldrums in November, with nationwide commercial pricing edging down by 0.1% — the seventh consecutive month of contraction for the index, according to the latest research from Ten-X. November pricing data suggests that investors are increasingly cautious about both CRE fundamentals and property values one year after a presidential election that introduced major uncertainty to U.S. policy and prompted an increase in interest rates.

The pricing gauge is now a meager 1.5% higher than its year-ago level, the weakest pace of growth in this cycle.

Ten-X Chief Economist Peter Muoio says, “The U.S. presidential election is a year behind us, but the events of intervening months have done nothing to alleviate investors’ wariness. Instead, the Ten-X CRE Nowcast’s annual growth rate continues to reach new lows. Pessimism about fundamentals, a policy environment in a constant state of flux, and impending interest rate hikes are all adversely affecting commercial real estate, and the market’s outlook at this stage is wary.”

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