Ten-X: property values decline for first time since 2010.


Commercial valuations decreased 26 basis points in February, led by office price drops, according to Ten-X, Irvine, California. Ten-X's pricing index examined transaction data and investor surveys to forecast commercial real estate (CRE) pricing trends in real time.

"This February all-sector decrease, which was largely due to sizable monthly price declines in the office and hotel segments, brings CRE valuations back to a level roughly on par with what we were seeing in November 2015," said Ten-X Chief Economist Peter Muoio. "While we've been reporting a gradual flattening in recent months, this is the first all-sector decline seen since January 2011 [the baseline index period]."

Office valuations dropped 270 basis points for the month, pulling year-over-year gains down to 3.3 percent--a dramatic slide from its late-2015 year-ago growth pace, which topped 12 percent. The hotel sector posted its fourth consecutive monthly drop, falling 133 basis points and lowering its annual gain to 5.2 percent--the lowest seen since summer 2014. Ten-X said many large hotel markets face dual headwinds: reduced foreign travel...

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