In another sign that the commercial real estate market recovery is forging onward and surpassing the single-family housing recovery, the total value of commercial real estate loans is on the verge of surpassing its pre-recession all-time peak of $1.731 trillion.
CRE loan value most recently measured $1.723 trillion, within 0.5% of the prior peak, which occurred at the end of 2008.
With the Federal Reserve sticking with its lower for longer interest rate policy in the face of global economic headwinds and financial market turmoil, it seems loan growth is poised to continue its expansion uninterrupted.
CRE prices and valuations also continue to move skyward, as August’s Moody’s/RCA Commercial Property Price Index (CPPI) shows total CRE prices a whopping 15.2% higher than a year ago at yet another all-time peak.
With values ascending, borrowing conditions loose, and the US economy looking increasingly like a (relatively) safe harbor amid an uncertain global economy, domestic commercial real estate’s outlook remains positive.
This post originally appeared in Auction.com.
