Commercial Real Estate Prices Adjusting - Summer 2008

Lack of demand rather than over-building is the primary reason some commercial real estate prices are lowering.  The exception is office/warehouse condominiums and office condominiums where some over-building occurred.  Prices for office/warehouse in prime locations reached $175 per square foot and are now lower than $120 per square foot.   Office condos downtown sold for over $400 per square foot and now prices only flirt with the $300 per square foot mark.  The lack of demand by fewer buyers and tenants has moved prices down which makes for great buying and leasing opportunities.