If you only read positive articles about commercial real estate, don’t click on this link. Nothing to panic about, or so they say. But the July CRE numbers from Moody’s are out and they’re indifferent at best.
The Moody’s/REAL All Property Type Aggregate Index recorded a 3.1% decrease in July, bringing the index to 108.98. This is the second consecutive month in which the index has shown a price decline in excess of three percent. The index has now fallen to a level that is only 0.9% above the recession low recorded in October 2009.
Does that mean if you didn’t buy that almost-prime building back in the spring, now wouldn’t be a bad time to see if it’s still on offer? The FT’s blog is commenting that given all we’ve been through, the numbers, while not positive, shouldn’t be surprising. And we all know anyway that transactions aren’t exactly doing a conveyor-belt imitation.