From the DOW JONES NEWSWIRES:
Commercial real-estate prices fell 7.6% in May, according to Moody's Investors Service, as both dollar volume and transaction count reached record lows in the nine-year history of the firm's Commercial Property Price Indices.
The indexes are down 29% from a year ago and 35% from their October 2007 peak.
The commercial real-estate sector has suffered since mid-2008 as the recession deepened, vacancies increased and new owners have been unable to refinance mortgages. Retail and hotel properties have been hit especially hard in the commercial sector.
"Large commercial real-estate price declines in the last two months suggest that a bottom may be starting to form, although higher transaction volumes would be necessary in order to draw any definite conclusions," Moody's Managing Director Nick Levidy said.
Office buildings fared worst, dropping 29% from a year earlier, while industrial buildings were the best performers, down 12%. Apartment buildings in the South suffered a 21% drop, with a 23% slide in Florida, one of the worst-hit states by the housing crisis and global recession.
The sooner we can get to the bottom, the sooner we can start climbing back to a new top.
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