Real News from RealNex

CRE Values Continue to Reach New Highs

Posted by Jeffrey D. Fisher Ph.D. on Aug 15, 2017 2:12:06 PM

Although the rate of price appreciation has moderated the past two years, it has still been positive and values have continued to reach new highs for commercial real estate as measured by the NCREIF Market Value Index (MVI).  NCREIF tracks the performance of over $500 billion in commercial real estate owned by institutional investors in the US and includes all the major property types (apartment, office, industrial, retail and hotel).  The following graph shows the quarterly value indexed at 100 in the first quarter of 1978.  The value is also above a long-term trend line shown in the graph.

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Topics: CRE, market report, Industrial

End of the Current Real Estate Cycle?

Posted by Jeffrey D. Fisher Ph.D. on May 16, 2017 10:36:26 AM

Sam Zell (pictured left) recently stated: “The real estate cycle is nearing its end” (Pensions & Investments, May 1, 2017).  We must admit that Sam had great timing when he sold his Equity Office REIT to Blackstone in 2007 which was the peak of the last cycle.

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Topics: market report, ncreif property index