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U.s. Commercial Real-estate Prices Fall 8.6% In A Single Month

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Commercial Real-Estate Prices Fall 8.6% On Month In April

JUNE 22, 2009, 12:18 P.M. ET

Commercial real-estate prices fell 8.6% in April as deals were closed after having been negotiated during the dark days of late 2008 and early 2009, Moody's Investors Service said.

"The size of April's decline, following a 5.5% decline in January, also suggests that sellers are beginning to capitulate to the realities of commercial real-estate markets," says Moody's Managing Director Nick Levidy. He added more distressed sales appear to be occurring.

The monthly decline, which leaves prices down one-quarter from a year earlier, continues the losing streak for the commercial real-estate sector, which had held out longer than residential real estate. However, commercial real estate began to feel the recession late last year, as retailers and other businesses cut back when financial markets and consumer sentiment were plunging.

Overall sales volume also fell sequentially in the month to 285, the lowest level since Moody's began tracking the figures in 2000.

By region, apartments are holding up the best in the East, down 12%. The South, the worst-performing region over the past year, saw declines of more than 20% in all sectors.

The three major office markets - New York, San Francisco and Washington - suffered declines as well, with Washington posting the biggest year-over-year fall at 21%. New York and San Francisco had declines of 13% and 20%, respectively.

-By Jay Miller, Dow Jones Newswires; 201-938-2331; jay.miller@dowjones.com

Meltdown!

Edited by MOP

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Wow. I thought that was annualised, but it's monthly. I know it's only a bit of fun (unless you own, or have lent against an office building in the US), but annualised, 8.6% a month is a 66% fall!

I suspect that a large proportion of US commercial property, especially suburban strip malls, is already worthless.

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Wow. I thought that was annualised, but it's monthly. I know it's only a bit of fun (unless you own, or have lent against an office building in the US), but annualised, 8.6% a month is a 66% fall!

Yep. Breathtaking collapse.

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Guest spp

But..But...We never seen it coming!

The consumer is buried in debt...fact.

Never mind...I'm sure we are at the bottom now.

:ph34r:

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Interesting. In the UK Commercial property led the way. In the US the opposite.

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But..But...We never seen it coming!

:ph34r:

Celente is no mug. He's been warning about a spectacular collapse in commercial real estate for a couple of years.

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Wow. I thought that was annualised, but it's monthly. I know it's only a bit of fun (unless you own, or have lent against an office building in the US), but annualised, 8.6% a month is a 66% fall!

Just think how big it would have been without the global recovery.

The recovery has arrived just in time.

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