Commercial real estate in the United States has suffered its worst annual capital return on record, according to Investment Property Databank (IPD), whose data stretches back to 1978.
The global real estate analysis firm, headquartered in London, reported this week that the IPD U.S. Quarterly Property Indicator fell 23.9 percent in 2009. That dive pushes the total capital decline to 33.4 percent from December 2007, when commercial real estate values were at their peak.
While the pace of market value decline eased over the final quarter, IPD says continued cap rate pressure together with weakening rental fundamentals is curbing optimism that 2010 is the year of recovery for the commercial sector.
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