The value of US commercial real estate rose in August compared to the previous month, new research shows. Bloomberg Businessweek reported on findings in the Moody's/REAL Commercial Property Price Index, which found that commercial property prices in the nation climbed by 2.4 per cent on a monthly basis. This also represented a hike of 7.2 per cent over the same month in 2010.
However, the ratings agency is not anticipating strong price gains in the short term, commenting that occupier demand for empty space is still suppressed. Robert Bach, chief economist for California-based brokerage Grubb & Ellis, told the news provider that potential buyers are being more wary at present. "Investors in general are a little more cautious and that includes investors in commercial real estate."
Earlier this month, Bloomberg cited findings from Real Capital Analytics, which revealed that investment volumes in the US commercial property sector fell back during the third quarter of 2011, compared to the previous three months. According to the organisation, a 15 per cent drop was recorded during this period.