Commercial Property Market Cycle

What type of market cycle do commercial properties usually run? Is is a similar cycle to residential of around 10 years where it rises then peaks, takes a correction then does it again?

Properties these days seem to be selling at record low yields. Where do people think we are in the commercial property cycle? Are we getting towards the end of the cycle and yields will start increasing in the next few years?

 

It depends...

One rule of thumb is that commercial follows resi by two years

 

So if we were to assume around end this year residential property would be the absolute peak, we could say the commercial property market would have another 2 years from then, so we are still quite far from the peak.

Roughly what percentage pullback does the commercial market correct in price?

 

I don't think my rule of thumb goes that far. And I am in Perth.....