Economy Watch: CRE Values Slide Again, Ten-X Reports

Prices slipped for the sixth consecutive month in October. A buyer-seller disconnect, investor uncertainty and expectations of interest rate hikes may be contributing.

According to the latest Ten-X Commercial Real Estate Nowcast, the U.S. commercial real estate sector continued its valuation slump in October, with nationwide commercial pricing edging down by 0.2 percent—the sixth consecutive month of contraction for the index. The monthly pricing index combines Google Trends data, Ten-X Commercial’s proprietary transaction data, and investor surveys to track CRE pricing trends.

Ten-X posited that a sharp divergence in pricing expectations between buyers and sellers is weighing on the market. Other factors keeping prices lower include investor uncertainty about how much longer the current business cycle has to run, the expectation that interest rates are heading upward, and a negative turn in property fundamentals…

Economy Watch: CRE Values Slide Again, Ten-X Reports


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