The country’s struggling mall sector is pulling overall commercial property values down with it, according to a new report.
Green Street Advisors’ Commercial Property Price Index declined 1 percent to 125.5 in October, the most dramatic month-over-month decline since the recession, the Wall Street Journal reported. Mall values fell 6 percent in October from September and 11 percent in the past year.
The growth in e-commerce has hit second-tier malls especially hard. Few properties are selling and if they do, it’s below their net asset values, Green Street senior analyst Peter Rothemund said.
On the flip side, industrial real estate prices have gone up 10 percent annually. [WSJ] – Katherine Kallergis