Commercial property values continue decline, may be tapering off

The monthly decline of commercial real estate prices nationwide is easing somewhat, according to the latest Moody’s/REAL Commercial Property Price Indices. In October, the price indices declined 1.5 percent from a month earlier, a sign that commercial prices may be leveling off, said Nick Levidy, managing director at Moody’s. “The pace of declines has tapered off since the large drops measured in April and May,” Levidy said, adding, however, that more declines may be seen before the market completely bottoms out. Commercial property values declined approximately 36.4 percent in October from the levels seen a year ago during the same time period and 43.7 percent from the values recorded during the market peak two years ago. TRD