Commercial property prices may be poised for dip

Commercial real estate prices may slide in the coming months.With building owners looking to refinance many of their mortgages in the coming months, analysts told Bloomberg commercial real estate prices could see a drop sometime in the next year.The source says while speaking at the Milken Institute Global Conference, Joseph Azrack, head of real estate for Apollo Global Management, said many commercial rents are too high for current market conditions, which could lead to an adjustment as the market stabilizes, creating opportunities for buyers.”Supply and demand fundamentals have stabilized and U.S. banks at least have enough reserves/capital to take their losses,” Azrack said in an e-mail to Bloomberg. “So the market clearing process can begin, which is a prerequisite to longer- term recovery in property cash flow and values.”The source added many recent reports have shown investors focusing on prime properties in stable cities as a way to mitigate risk.The Houston real estate market remains one of the strongest nationwide for commercial properties. A recent report from CoStar ranked it as one of the top 10 markets for office, industrial, retail and multifamily properties.Courtesy of 2M Realty News

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