Deals
Landlords Face Slowing Price Gains After U.S. Records Shattered
- Low interest rates helped boost commercial property prices
- `The warning light is on,' says analyst Philipp of Moody's
2016 Housing Trends: Affordability an Issue?
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For commercial real estate investors, the good times may be over.
The Federal Reserve’s first interest-rate increase in nine years has removed a crutch that’s helped sustain 33 consecutive months of price growth of at least 10 percent and padded returns for buildings from office towers to luxury hotels. While values won’t necessarily fall, they aren’t likely to climb much higher next year, according to Tad Philipp, a commercial-property debt analyst at Moody’s Investors Service.