Elite Towers Selling Just Fine, But Others Still Struggle
That’s the latest finding by the number crunching real estate wonks over at MIT.
A commercial property index put out by the MIT Center for Real Estate reports prices plunged 7 percent drop during the third quarter. That came after a surge in values during the second quarter.
The result: Despite a bounce back in sales, overall commercial property prices are still off by more than 36 percent from their 2007 peak.
Of course, that’s not the case if you own a trophy tower, with the Hancock just fetching $930 million after a bidding war reminiscent of the bubble years.
“The mixed signal continues to reflect the split nature of the U.S. commercial property market these days, with high demand for ‘trophy’ properties providing investment managers with sufficient profit to allow them to cull some weaker properties from their portfolios,’’ noted the MIT center’s research director, David Geltner.