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From Jason Payne, Market News Analyst …
Earlier this week, Moody’s Investors Service reported that U.S. apartment prices decreased 0.2% in September – the first monthly decline in nearly four years.
Although the apartment prices in major markets increased by 1.3%, the group’s overall regression was primarily driven by a 1.1% dip amongst multifamily assets located in smaller cities, according to the ratings company.
Meanwhile, the broader Moody’s/RCA Commercial Property Price index revealed that values for all commercial property types continued their upward march in September, increasing by an average of 1.8% for the month. (This gauge of general commercial real estate prices has now climbed 47.2% over the last four years, after bottoming in 2009.)
So, what gives?
Why did the resilient apartment sector underperform most of its peer groups in September?
Was this development a statistical fluke? Or does it imply something more meaningful for…
Jason Payne
is a management consultant and founder of the Groundwar Group -- a private consulting firm providing premier corporate advisory and leadership training solutions for business leaders and investors worldwide. Mr. Payne is also the Senior Market News Analyst and a featured "Mindset" advisor for more than 15,000 entrepreneurs and investors at RealEstateMogul.com -- roles he has held since 2013 and 2014, respectively. In these capacities, Jason draws from more than a decade of successful business and investment research on Wall Street to provide insightful commentaries on a wide variety of investing- and leadership-related topics.
Mr. Payne began his career as a research analyst in the award-winning Equity Research department of Morgan Keegan & Company, where at 26 years of age, he became one of the youngest published analysts on Wall Street -- with a specialized focus on real estate investment trusts (REITs). Jason also holds a degree in Finance from New York University's prestigious Leonard N. Stern School of Business, and he is currently completing his professional residency within the Global Leadership Training program of Uruguay's multinational Geronimo Center for Innovation & Leadership.