The competition is increasing for Prime Commercial Properties!
The price of Prime Commercial Properties is heading toward exceeding a property’s appraised value in some markets.
This information regarding the Prime Commercial Properties is according to a report issued by a national property-valuation firm, and players in southwestern Connecticut are beginning to encounter the experience.
The new data was released in the summer issue of the Real Estate Research Corp.’s Real Estate Report, which is issued quarterly by the New York City-based firm.
Increased demand for commercial real estate is seen by some as a haven in the current volatile investment environment, and competition for high quality assets is keen, said Ken Riggs, president and CEO of RERC.
“The relationship between the value versus price of commercial real estate is precariously balanced,” he said. “Our analysis showed upward pressure on pricing without a corresponding increase in value, and when this happens, investors may be forced to accept lower returns for assets with added risk.”