More on Commercial Real Estate

The Wall Street Journal reports (subscription required) that office rents increased last year.

This confirms our earlier post about operating earnings improving.  We’re still concerned about pricing.  After yesterday’s post, a friend emailed to note that cap rates were at very low levels.  Now it’s true that cap rates can rise through improved earnings, not just falling prices.  But I’m still worried about over exuberance in investment real estate markets.