US Property Prices Drop For The First Time In Six Years
US commercial real estate prices dropped in January for the first time since 2010, a sign of slowing demand after a six-year surge—meaning the sun might be setting on US property's recovery.
The Moody/RCA Commercial Property Price Index fell 30 bps from December, in a drop led by office and industrial, which each slumped over 1%.
Moody’s says the slippage in demand is a “significant milestone,” signaling an ongoing “shift in sentiment” among real estate investors, Bloomberg reports.
Recent market volatility could be hurting real estate demand, and it has even the biggest in the industry worried. Just this past week Blackstone’s head of real estate, Jon Gray, said rates of return are falling, and it’s getting very difficult to package and sell CMBS. [Bloomberg]
