While commercial real estate has been steadily recovering in recent years, industry experts expressed concern that prices may have reached a peak during the November 13th Commercial Economic Issues and Trends Forum at the 2015 REALTORS® Conference & Expo.
Lawrence Yun, NAR chief economist, said the fundamentals of the commercial real estate market have been gradually improving and this has led to prices rising to new peaks.
“There is an indication that prices may have topped for high-end commercial properties in major markets,” said Yun. “Those properties priced above $2.5 million have enjoyed large price gains in recent years but are now at risk of experiencing a modest price decline.”
Yun predicts that while the larger commercial markets have seen significant growth over the last few years, now is the time for smaller markets and lower end properties to shine. This is positive news for Realtors® who specialize in commercial real estate and who tend to work with smaller properties typically valued between $500,000 and $1 million.
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