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Daily Real Estate News  |  May 19, 2004  |   Values of Office Buildings and Apartments Drop Reis Inc. reports that the value of apartment units and office buildings declined sharply in the first three months of this year thanks to diminished leasing activity and reduced rents. Apartment values slipped 1.4 percent from $68,846 per unit in last year's fourth quarter to $67,884, while office values declined from $134.76 per square foot to $132.33 over that same time span. The statistics mark the fifth consecutive quarter of declining values for offices, even though Reis researchers note that properties sold during the January-through-March period fetched an average $165.60 per sq. ft.--a premium of 25 percent over the Reis value. The effects of America's continued economic downturn continue to have negative effects on suburban office space. As far as multifamily housing is concerned, while low interest rates and the rush to homeownership have threatened to further destabilize the sector, many expect solid employment growth numbers in the last few months to eventually lead to more apartment rentals.

Source: Wall Street Journal (05/19/04); Chittum, Ryan

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