U.S. Commercial-Property Prices Fall With Worst Yet to Come
>Hotel, retail and office values all decline year-over-year
>Outlook dims as the economic toll from pandemic deepens
August 26, 2020 | John Gittelsohn | Bloomberg
U.S. commercial real estate prices are falling as the economic toll of the Covid-19 pandemic worsens — and the decline is just getting started.
Indexes for office, retail and lodging properties all slipped year-over-year in July, data from industry tracker Real Capital Analytics Inc. show. Transaction volume plummeted to $14 billion across all sectors, down 69% from July 2019.
“The worst is yet to come,” Real Capital Senior Vice President Jim Costello said in a telephone interview. “We’re not seeing the fallout yet of owners selling properties and taking a loss.”
