Office building sales across the U.S. fell 70 percent during October from a year earlier, according to a report this week from Reuters.
The story said a Nov. 20 report issued by Real Capital Analytics shows that sales of office properties that typically sell for more than $5 million fell to $4.4 billion during October.
Reasons for the decline include the current credit crisis, which has hit the U.S. commercial real estate and the office market harder than others sectors. As a result, purchases paid for almost entirely by debt have become a thing of the past. Even using less leverage, RCA analysts said deals are harder to come by as borrowing rates rise and risk becomes a factor in obtaining a loan.