Commercial Real Estate Values Drop Amidst Surge in Treasury Yields

Due to the surge in the 10-year Treasury yield, commercial real estate values have declined significantly, with some areas experiencing a drop of 20%. This has caused concern for the state of the market, with mortgage rates rising and returns for property investors decreasing. Analysts from Barclays forecast that office property prices will drop by 30%, multifamily properties will fall by 20%, and retail properties will decrease by 10%. While the full extent of the consequences and future trends are uncertain, further deterioration in commercial real estate property prices is expected if the 10-year Treasury yield continues to remain high.

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