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Commercial real estate and low interest rates

Author

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  • John Krainer

Abstract

Commercial real estate construction faltered during the 2007 recession and has improved only slowly during the recovery. However, low interest rates have led to higher property valuations and are clearly benefiting the sector. The recovery of commercial property prices has been notable. Some measures suggest that, in some segments of the market, prices are close to their pre-recession highs. Valuation measures do not suggest that current prices are excessive.

Suggested Citation

  • John Krainer, 2013. "Commercial real estate and low interest rates," FRBSF Economic Letter, Federal Reserve Bank of San Francisco, issue apr22.
    • Handle: RePEc:fip:fedfel:y:2013:i:apr22:n:2013-12
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