Commercial Real Estate on the Mend
Commercial real estate prices have begun inching up, just kinda slowly. That makes three months in a row of gains, for those of you at home keeping score. Prices are up 6.3% from October. And that was down 43.7% from October 2007.
Of course, experts were quick to point out that three months of gains just don’t mean anything for the future. We can’t use this to pick up on any trends.
Still, I can’t help but be a little encouraged by the news. Price gains are generated by higher transaction volumes. Which might mean that businesses are starting to reopen. That kind of a trend would have really major impacts all across the board.
These gains applied to offices, retail locations, apartments, and industrial areas. Each sector saw double digit price declines last year but are starting to rebound.
So does that mean you should be putting all your eggs in one commercial real estate basket?
Definitely not.
You’ve gotta be ready to move on this news soon and make a killing off those great investments. But don’t get ahead of yourself. Let’s keep each other posted on anything we hear. That way we can all make the best decisions possible.
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kmolo
