Investment Real Estate Services

Commercial Real Estate and Low Interest Rates

A new article published by the Federal Reserve Bank of San Francisco, does an excellent job explaining how the current environment of low interest rates is helping commercial real estate values. “Commercial real estate construction faltered during the 2007 recession and has improved only slowly during the recovery. However, low interest rates have led to higher property valuations and are clearly benefiting the sector. The recovery of commercial property prices has been notable. Some measures suggest that, in some segments of the market, prices are close to their pre-recession highs. Valuation measures do not suggest that current prices are excessive.”

Read the full article here: http://www.frbsf.org/publications/economics/letter/2013/el2013-12.html

 

Commercial real estate investment over business cycles chart:

2013-12-1



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