U.S. commercial real estate prices fell the most in almost a year in June as the economic recovery showed signs of faltering, Moody's Investors Service Inc. said Thursday.
The Moody's/REAL commercial property price index dropped 4% from May, the rating agency said. The decline was the biggest since July 2009, and pushed the gauge down 0.9% from the start of the year.
"We expect property prices to remain choppy for some time as commercial real estate markets and the broader economy continue their slow recovery from the recession," Moody's researchers said in the report. High unemployment and concern over slowing economic growth are hampering a price rebound for offices, apartments, industrial and retail properties, Moody's said.