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A story was published this month in Bloomberg about the credit-market swoon giving off ominous signals, a rather gloomy message from the bond market for property investors.

With the yields on United States corporate debt rising, reaching a three-year high in November, property investors are seeing forecasted returns on properties from offices, apartment towers, to top-tier shopping malls remaining stubbornly low.

According to research firm Green Street Advisors LLC., the narrowing divide suggests that, after five years of gains, prices may start to slide as other types of investments become more attractive.

The insatiable desire for commercial real estate values is fading due to the Federal Reserve’s preparation to raise interest rates for the first time in nine years. Property investors are showing more caution and price appreciation is already slowing, commented Andy McCulloch, an analyst at Green Street.

The story reveals that real estate values have been surging since 2010, fueled by cheap loans, a flood of cash from foreign buyers seeking havens, and a global hunt for yield. Maintain The Property Effectively and Completing Regular Inspections is the key factor to keep your Retail Tenants Happy.

“People are a little more worried about the overall direction of the economy,” McCulloch said. “The frenzied environment has stopped.”

But how true will all this really be? Speculation is present with the increase and a drop may be imminent. In an October presentation, the Federal Reserve showed commercial real estate values as potentially showing signs of overheating.

All in all, the real estate industry has benefited from low yields for bonds in recent years as investors ventured into riskier assets to boost their returns. With the rise of corporate-debt yields, owning office buildings appears as less alluring.

So what if this is may the case? Green Street analysts aren’t forecasting a dramatic crash. The research firm predicted last month that commercial-property prices will be about 5 percent lower in a year based on readings of the corporate-bond market and the steep discount in shares of real estate investment trusts relative to the value of their holdings.To effectively buy real estate you MUST know property buying key factors.

In order for a change, something significant would have to happen…

Mitigating circumstances may push real estate prices higher. “The fundamentals underpinning commercial-property values — rent and occupancy growth — remain on the upswing, and private equity firms and overseas institutions with record stockpiles of cash are still targeting U.S. real estate,” the story asserts.

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