Commercial property values in Florida and around the country have seen robust growth in recent years, but the latest Commercial Property Price Index released by the leading real estate research firm Green Street Advisors indicates that this growth may have now ground to a halt. Commercial real estate prices plunged during and after the 2008 financial crisis, but several years of double digit gains have seen values surge past even their peak pre-crisis levels. While the latest Green Street Advisors report reveals that commercial property prices are a healthy 7 percent higher than they were in April 2015, it also shows that they did not increase at all in April 2016 from the previous month.
The Green Street report tracks commercial real estate prices across the country, and its authors are quick to point out that prices in April 2016 did not remain stagnant for all types of property or in all areas. Losses in less-attractive markets were offset by gains in more sought-after areas, and trophy properties more than made up for deep cuts in the prices of less glamorous buildings.
The most notable commercial property deal to take place in April 2016 was the sale of Manhattan's famous Sony Building. The iconic Madison Avenue postmodern tower changed hands in a deal worth more than $1.3 billion. A $525 million deal is also said to be nearing completion for another landmark Manhattan tower on nearby Fifth Avenue.
Commercial real estate is usually a high-risk, high-reward proposition, and shrewd developers and investors rarely put their time or money into a project without performing thorough due diligence. Experienced real estate attorneys may help them in these efforts by reviewing the proposed project closely and identifying any areas that could give rise to legal disputes in the future.