IRVINE, CA—Commercial property valuations have appreciated at the slowest pace in two years, according to Ten-X. In its latest Ten-X Commercial Real Estate Nowcast, the online real estate marketplace and GlobeSt.com Thought Leader says valuations across the five major commercial real estate sectors increased 19 basis points in January from the previous month, a sluggish pace not seen since early 2014.
"The first reading on commercial property markets in 2016 shows property values increasing, but still at a slower pace as the previously divergent growth rates of the different property segments continue to converge," says Peter Muoio, Ten-X's chief economist. That shouldn't be taken to mean that the results were uniform across the board, though: Ten-X notes that valuations increased in three sectors and declined in two.
In the Nowcast pricing index, which combines Google Trends data, Ten-X's proprietary transaction database and investor surveys, retail valuations increased 58 bps for January, while apartment rose 39 bps. The biggest leap ahead was seen in industrial, which followed up an outstanding December with a further 215-bp increase this month.
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
