IRVINE, CA—Property pricing continued to decline over the past month, with Ten-X's latest Commercial Real Estate Nowcast showing erosion of 0.1% compared to August. The five-month streak of falling prices comes amid divergent opinions among investors over the duration of the business cycle, a higher interest rate environment and a lack of meaningful improvement in fundamentals for many sectors, Ten-X said Thursday.
“The Nowcast's fifth consecutive monthly decline in September indicates the market has again failed to shake off its malaise, as a murky business cycle prognosis and tightening monetary policy continue to take their toll,” says Peter Muoio, chief economist with Ten-X. “The Nowcast's annual growth rate is at its lowest level since we introduced the index, and several CRE sectors are in similar slowdowns.
“While there is something of a varied picture across the five CRE segments, there is no denying the overall softening of commercial real estate pricing,” he continues. Accordingly, pricing is now up just 4.4% over the year-ago level.
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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.
