The national economy may be showing signs of life, but not the commercial real estate market. At least not yet.

The office market is expected to remained mired in recession until 2011, with real recovery not kicking in until 2012, according to the newly released PricewaterhouseCoopers’ Korpacz Real Estate Investors Survey.

Now that’s a mouthful.

Office tower values, already hammered, will continue dropping over the next year as demand by companies for new space falls.

The suburban market will take the biggest hit, with an expected 12 percent drop in values, with downtown business districts a close second, at 11.4 percent. Malls and apartment complexes will fall in value by 8.5 percent and 7 percent, respectively.

The good news is that the Boston market, as well as San Francisco, will see less steep declines than other markets.

Dallas, San Diego, Houston and Atlanta, by contrast, will get hammered, with commercial property values set to plunge anywhere from 12 to 17 percent over the next year.

Ouch.

This entry was posted on Thursday, June 25th, 2009 at 8:18 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.