Although not a precipitous drop at 0.1%, the nationwide decline in commercial property pricing seen in August marked the fourth consecutive decline for Ten-X’s Commercial Real Estate Nowcast index. Pricing across the industry is now up just 5.8% from the year-ago period.
Ten-X sees the continuing slide in valuations occurring as market participants grapple with a higher interest rate environment, government policy uncertainty and concerns that the business cycle is nearing its end. “The Nowcast’s fourth consecutive monthly decline in August indicates that the market remains in its malaise as investors sort through late cycle uncertainty and the prospect of further increases in interest rates,” says Peter Muoio, chief economist with the firm.
