By Hui-yong Yu
Posted by Yen Ho
Feb. 19 (Bloomberg) -- Commercial real estate prices in the U.S. dropped by almost 15 percent in 2008, more than home prices, with fourth-quarter depreciation the greatest in the national apartment market, Moody’s Investors Service said in a report.
The price decline eliminated the gains seen in 2006 and 2007 and returned values to 2005 levels, according to the Moody’s/REAL Commercial Property Price Indices. Prices fell 2.2 percent in December from November, said New York-based Moody’s.
Commercial values are now down more than 16 percent from their peak in October 2007, said Moody’s. The deepening recession is causing tenants to cut jobs and vacate space, bringing down building incomes, while the credit freeze is making it difficult to finance property purchases.