It’s now perfectly obvious that the commercial real estate (CRE) markets have followed the inevitable lead of the residential markets down into an historic recessionary decline.
Earlier this week the MIT Center for Real Estate released their Q1 2009 read on the nation’s commercial property market showing a stunning 20.71% year-over-year decline to the price of all commercial structures as an aggregate and a 27.98% decline in demand.
Worse yet, on a peak basis CRE prices have declined a staggering 26.43%.
Individually, Apartment property prices declined 22.75%, Industrial property prices declined 33.46%, Office property prices declined 23.72% and retail property prices declined 15.49% compared to their respective peaks set in 2007.
Looking at the supply and demand indices of the “All Properties” index appears to shed some light on the factors now working to drive prices lower.