Commercial real estate dove 14.9% in December

Commercial real estate prices plunged 14.9% on average in December from the same month a year ago, according to the Moody’s/REAL National All Property Type Aggregate Index. The index, which is based on transaction data collected from Real Estate Analytics LLC in New York, found that prices have now fallen more than 16% from their peak in October 2007. In the fourth quarter, commercial real estate prices declined 12.4% on average. Apartment, industrial and office properties saw prices fall 13.6%, 13.9% and 13.5%, respectively, while retail properties only dipped 8.5%. “The market has not seen this price level since 2005, erasing three years of gains,” Neal Elkin, president of REAL, said in a statement.