Winners and Losers of the Real Estate Comeback
Maybe a rising tide does't lift all boats. A Morgan Stanley analysis of the Moody's/RCA Commercial Property Price index (which recently surpassed its 2007 peak) reveals exceptionally schizophrenic results for various market sectors. Big city apartment buildings are thriving, with values nearly 35% above their pre-crash apex. Central business districts have also fared well, with office properties in those areas 27.9% than the previous high. But leave prime downtowns and the picture changes: suburban office buildings and fringe retail corridors are both down 23%, with hotels lagging 30.8% behind their peak value. In the Wall Street Journal, Richard Hill of Morgan Stanley Research, cautioned people against getting "too caught up” in the big picture while certain components flounder.