Here is a quick look at the trends on apartment, office and retail.
Investors have been paying premium prices for trophy properties in gateway cities, and this accounts for much of the downward trend reflected through the current pe
riod. The last six quarters, though representing a bit of an upswing relative to the lows of 2009, are certainly still subject to selection bias since transaction volumes are still less than 30 percent of 2007 highs.
The real question is whether the current economic sentiment will lead investors to shy away from commercial real estate properties, or whether it will benefit trophy properties even more as they – much like gold or the Swiss franc – are perceived to carry even greater safety amidst turbulent times.
