US commercial property prices unlikely to repeat 2015's upsurge
Fallout from oil price slump and China's slowing growth looms even as borrowing costs start to rise, threatening to crimp returns
Fri, Jan 01, 2016 - 5:50 AM
SIGNS OF OVERHEATING? Commercial real estate prices now exceed the 2007 peak by 16 per cent and values for the most sought-after properties - including office buildings and apartment complexes in large cities such as New York (above) - are about 60 per cent higher.
FOR investors in US commercial real estate, the good times may be over.
The Federal Reserve's first interest rate increase in nine years has removed a crutch that helped sustain 33 consecutive months of price growth of at least 10 per cent and padded returns for buildings...