A current general problem for CRE, and office properties in particular, is the lack of price discovery. There haven't been enough transactions over the past 18 months to provide comparable sales and an insight into how markets value the assets.
However, Moody's in a new report said that two market signals are indicating that the office market may be approaching bottom.
The first signal is the annual year-over-year change in transaction volume. At the beginning of the fourth quarter of 2023, volume change stood at about -50%. By the end of the three months, the change climbed just over into positive territory. The first quarter of 2024 saw an increased gain as did the second quarter.
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