Take from Moody’s Investor Services:
According to Moody’s Investor Services, commercial real-estate prices fell 8.6 percent in April. When viewed in combination with the 5.5 percent decline in January, it would seem “sellers are beginning to capitulate to the realities of commercial real-estate markets,” says Moody’s Managing Director Nick Levidy. He added more distressed sales appear to be occurring.

The monthly decline, which leaves prices down one-quarter from a year earlier, continues the losing streak for the commercial real-estate sector, which had held out longer than residential real estate. However, commercial real estate began to feel the recession late last year, as retailers and other businesses cut back when financial markets and consumer sentiment were plunging.

By region, apartments are holding up the best in the East, down 12 percent. The South, the worst-performing region over the past year, saw declines of more than 20 percent in all sectors. The three major office markets – New York, San Francisco and Washington – suffered declines as well, with Washington posting the biggest year-over-year fall at 21 percent. New York and San Francisco had declines of 13 percent and 20 percent, respectively.