By Wyatt Avery on March 11th, 2020
With mounting fears of a global economic slowdown spawned by the new coronavirus, it’s worth looking at how commercial real estate prices have performed since the start 2007, before the last global crisis took hold.
In the past decade, commercial prices for all the 18 metros that contribute to the RCA CPPI Global Cities Composite increased, but not all of them are back up to their levels before the Global Financial Crisis.
In North America, Chicago and DC are just below pre-GFC levels. As of the end of 2019, Chicago prices were down 6% from the start of 2007, and DC prices were 4% lower. At the other end of the spectrum, San Francisco and Toronto have registered nearly triple-digit gains compared to pre-GFC prices.
In Asia Pacific, five metro indices increased by nearly 100% since early 2007, with Hong Kong climbing 205%. Tokyo was the outlier, gaining only 10% from early 2007 to the close of 2019.
London registered the highest price gains in Europe over the last decade, up 123%, but since early 2007 the Nordic A metros have climbed the most. Amsterdam has fared the worst of the European metros, never recovering to pre-GFC levels.
To learn more about the RCA CPPI (Commercial Property Price Indices) and to sign up for reports visit rcanalytics.com. RCA will release its next report on US prices on March 26 and its next Global Cities report in May.
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