CoStar News
Summary: Commercial property prices are struggling due to reduced tenant demand, despite an expected interest rate cut from the Federal Reserve. Prices are projected to remain flat at best until tenants start leasing more space than they are vacating. Over the past year, there has been a drop in demand for office, industrial, and retail space combined, with an estimated 13.2 million square feet more emptied than newly leased in the 12 months ended in August. The value-weighted index for high-dollar deals increased slightly in August, while the equal-weighted index for lower-priced deals fell, indicating mixed reactions in different market segments.