Commercial Real Estate Bubble?

by confoundedinterest

Given the advent of on-line shopping, commercial real estate prices are not quite back to where they were at the height of the asset bubble prior to the financial crisis of 2008-2009. Suburban office space is barely above the pre-crisis peak.

READ  POWELL: NO ONE CAN REALLY IDENTIFY AN ASSET BUBBLE

reindices

On the other hand, apartment prices are substantially above where they were in 2008-2009, as are CBD (Central Business District) offices.

All with the help of The Federal Reserve’s low interest rate policies. But notice that the growth rate of CRE has slowed (except for apartments).

READ  The Two Pins That Will Pop The Stock Market Bubble

The good news for CRE investors? The Fed isn’t likely to keep raising their target rate or continue to shrink their balance sheet.

wirpo

 

504 views

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.