Prices for commercial real estate sold by institutions such as pension funds fell by close to 6 percent in the first quarter of 2009, according to the MIT Center for Real Estate.
The 5.8 percent drop in the prices is the fourth consecutive quarterly drop and the sixth in the past seven quarters, according to an index developed by MIT’s Center for Real Estate. Prices are now 21 percent below where they were a year ago and 26 percent below its mid-2007 peak. Commercial real estate prices in the first quarter are comparable to the 27 percent drop the index recorded in the last major commercial property downturn in the late 1980s and early 1990s.
The index tracks prices that institutions pay or receive when buying or selling commercial properties such as shopping centers, apartment complexes and office towers.