John Askins


Royce Realty

Texas Commercial Cap Rates Rolling Back To Earlier Levels

By John Askins    Nov 04,2009    Askins Online Real Estate Blog
Texas Cap rates on commercial real estate (CRE) are likely to move back to levels seen in 2002 and 2003, said Real Estate Center Chief Economist Dr. Mark Dotzour last week in Las Vegas.

Dotzour was speaking to an audience of 700 at the Real Estate Investment Securities Association's Annual Conference.

"This move from the historic low cap rates of 2006 and 2007 back to 2002 levels means that commercial property values are likely to be 30 percent to 45 percent below the values at the peak of the market in mid 2007," he said.

He said overall price declines will vary from city to city, with the biggest overall declines in the nation's largest cities.

“The bidding frenzy for commercial real estate was hottest in the largest metro areas, which traditionally attract bidders from all over the world," he said. "Smaller cities, such as Amarillo and Lubbock, never saw the same bidding pressures. Consequently prices never spiked and, consequently, they won’t have as far to fall.”

Post Category: Foreclosures & Investments, Mortgage & Finance, General

Join the discussion...

To post a comment on this blog post, you must be an HAR Account subscriber, or a member of HAR. If you are an HAR Account subscriber or a member of HAR, please click here to login. If you would like to create an HAR Account account, please click here.
Login to Comment
Disclaimer: The views and opinions expressed in this blog are those of the author and do not necessarily reflect the official policy or position of the Houston Association of REALTORS®
Advertisement

REALTOR® Broker

Advertisement

Blog Archive

  • Archive
    •     2015
    •     2014
    •     2013
    •     2012
    •     2011
    •     2010
    •     2009
Advertisement



Texas Real Estate

Counties Cities Neighborhoods Zip Codes