U.S. commercial property prices fell 7.6% in May from a month earlier, bringing the total decline to 35% since the market's peak, Moody's Investors Service Inc. said Monday.

Prices dropped 28.5% in May from April, Moody's said.

Office, apartment, retail and warehouse values are down from their October 2007 highs as the recession is forcing landlords to accept less rent and financing is scarce.

"Large commercial real estate price declines in the last two months suggest that a bottom may be starting to form," Nick Levidy, a Moody's managing director, said a press release.

"Higher transaction volumes would be necessary in order to draw any definitive conclusions."

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