Moody's Expects CRE Rebound

Commercial real estate property types across the country are likely to rebound over the next year, with some exceptions, according to a report from Moody's Investors Service.Based on a scoring system the rating agency has developed, Moody's reports that scores for all property types, except the hotel sector, improved in the last quarter of 2003. And 33 regional markets improved by 15 points or more. Of the different property types, the multifamily sector was the best performing for the fourth quarter. The retail sector saw scores rise to 82, from 74 for the previous period. In the office sector, downtown properties performed better than suburban properties, with the downtown score rising to 58 from its previous score of 53. The industrial sector's score improved from 59 to 63. "Full-service" hotel properties saw their score decline to 53, from 57 for the previous period, while the score for "limited-service" hotel properties remains at 55.