Questions CRE Owners — Especially Office Owners — Have to Ask Themselves

By Harold Bordwin

May 29, 2023 10:00 AM

Many commercial real estate owners are facing a severe market downturn characterized by a significant decline in property values and investment returns.

​​The Vanguard Real Estate Index Fund, which focuses on investing in REITs that purchase office buildings, hotels and other properties, has plummeted recently. The Green Street Commercial Property Price Index also confirms the downward trend, with average prices dropping 15 percent since last March, especially impacting office spaces with a significant decline of 25 percent. Additionally, the S&P Office REITs index is nearing its 2009 low with a 45 percent decrease.

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