ASU study finds commercial real estate rebound taking hold

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PHOENIX (AP) -- A new Arizona State University report finds a rebound in commercial real estate prices is gaining steam.

The report from Professor Karl Guntermann at the W. P. Carey School of Business shows Phoenix-area commercial real estate prices posted a 13 percent annual rate of increase in last year's 4th quarter. A year earlier, prices were posting annual declines approaching 40 percent.

Guntermann says Tuesday's report shows investors are taking advantage of prices that have fallen by 50 percent and are now at 2004 levels. Those investors are seizing the opportunity to buy good long-term investment properties at cut-rate prices.

The decline in commercial real estate prices lasted less than a year and a half, compared with home price declines that have continued for more than three years.

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