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U.S. Commercial Property Prices Drop for First Time in Six Years By Kara WetzelMarch 7 (Bloomberg)Values fell 0.3% in January from prior month, Moody’s says.Decline is `significant milestone’ showing shift in sentimentU.S. commercial real estate prices dropped in January for the first time since 2010, a sign of weakening demand by investors after a six-year rally that pushed values to records.The Moody/RCA Commercial Property Price Index slipped 0.3 percent from December, Moody’s Investors Service said in a statement Monday. The decline was led by office and industrial buildings, which each had a price drop of more than 1 percent.“This is a significant milestone that signals that a shift in sentiment among commercial-property investors is under way,” Moody’s said in the statement. Now Coming to the Commercial-Property Market: Defaults March 8 (WSJ) — New signs of weakness are surfacing in the commercial-property market, ending a half-decade run of improvement with steadily climbing values. Broader market volatility has caused lenders who sell off their loans via bonds known as commercial mortgage-backed securities to grow wary. While the segment made about 0 billion in loans last year, it has come to a virtual halt today, lending executives said. If that continues, it will become more difficult for landlords who took out 10-year loans in 2006 to refinance today.

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U.S. Commercial Property Prices Drop for First Time in Six Years

By Kara Wetzel

March 7 (Bloomberg)

Values fell 0.3% in January from prior month, Moody’s says.

Decline is `significant milestone’ showing shift in sentiment

U.S. commercial real estate prices dropped in January for the first time since 2010, a sign of weakening demand by investors after a six-year rally that pushed values to records.

The Moody/RCA Commercial Property Price Index slipped 0.3 percent from December, Moody’s Investors Service said in a statement Monday. The decline was led by office and industrial buildings, which each had a price drop of more than 1 percent.

“This is a significant milestone that signals that a shift in sentiment among commercial-property investors is under way,” Moody’s said in the statement.

Now Coming to the Commercial-Property Market: Defaults

March 8 (WSJ) — New signs of weakness are surfacing in the commercial-property market, ending a half-decade run of improvement with steadily climbing values. Broader market volatility has caused lenders who sell off their loans via bonds known as commercial mortgage-backed securities to grow wary. While the segment made about $100 billion in loans last year, it has come to a virtual halt today, lending executives said. If that continues, it will become more difficult for landlords who took out 10-year loans in 2006 to refinance today.

Commercial real estate, Restaurant index

WARREN MOSLER
Warren Mosler is an American economist and theorist, and one of the leading voices in the field of Modern Monetary Theory (MMT). Presently, Warren resides on St. Croix, in the US Virgin Islands, where he owns and operates Valance Co., Inc.

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