With a .3% price decrease last month, commercial real estate prices continue to see a drop as we head further into 2018.
“The declines over the last three quarters have been mild and more of a stagnation than a decline,” Ten-X Senior Quantitative Strategist Chris Muoio said.
Two things can be chalked up for the decline: the industries aggressive fundraising efforts coupled with large cash reserves set aside for investments and a lack of attractive investment opportunities.
The biggest loser in all of this is the hotel sector with a price drop of 1.1% from December to January followed by the apartment sector. Office real estate saw the only jump last month with a price increase of .6%.
Upcoming real estate news is expected for the San Antonio commercial real estate market as tax decreases take effect.
“We’ll be looking to see if recent tax cuts and strong economic fundamentals bring CRE pricing back up to positive gains throughout 2018,” Ten-X Chief Economist Peter Muoio said in a statement.