Commercial Real Estate Sales and Prices Are Surging, Prompting Concerns About Possible Bubble, According to The WSJ

The Green Street Commercial Property Price Index hit 118 in July, this leading indicator of commercial real estate prices, has been on a steady increase since its low in 2009.

“The value of U.S. commercial real-estate transactions in the first half of 2015 jumped 36% from a year earlier to $225.1 billion, ahead of the pace set in 2006, according to Real Capital.” As published in the Wall Street Journal.

Private equity real estate fundraising has already exceeded $73 billion and is on pace to surpass the highs in 2008.  Many are comparing this to the boom of the mid-2000s, which ended in a bust that affected developers around the world.

 

Sources:
http://www.wsj.com/articles/surge-in-commercial-real-estate-prices-stirs-bubble-worries-1439415930
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