Dr. Dotzour does a great job of providing a status report regard CRE pricing and the tightening of money due to the credit market. Key points include:
- New construction has been slowed by the tight credit market in the U.S.
- It’s a classic case of too many dollars chasing too few deals.
- Real Capital Analytics (RCA) shows a 13.6% increase in commercial real estate pricing from the same time one year ago.
- CoStar Commercial Price Index shows that commercial real estate prices have increased by 8.4% from a year ago. Retail showed the greatest appreciation.
- Capitalization Rates (Cap Rates) for trophy properties are as low as 4%.