Property values decreased 1.4% year over year in April across all segments of the U.S. commercial real estate market, with the five major segments reporting mixed results, according to the latest Ten-X All Property Nowcast report.
The only segments to post gains were office and retail properties. The value of office properties saw a 0.6% monthly gain in April, or 1% on the year, while retail property values rose 0.5% on a monthly basis, or 3.4% year over year, despite the sector taking a hit from e-commerce-related retailer bankruptcies.
Industrial property valuations fell 0.7% month over month, or 5.1% year over year, which could be due to investor concerns surrounding changes in trade policy, according to the report.
Apartment and hotel valuations decreased 2.3% and 3.9% year over year, respectively, with little change on a monthly basis. The report said the depreciation could be attributed to investor worries over the rise in new supply.
In terms of deal volume, the five commercial real estate sectors hit $107 billion during the first quarter, reflecting a 6.7% year-over-year increase, thanks to a stronger start in 2018 than in 2017, the report noted, citing Real Capital Analytics.
