Commercial property prices in the US saw their sharpest decline in February since records began nearly 15 years ago, as deals struggle to secure financing and amid a slowing economy, according to data from Standard & Poor's released yesterday.

The value of commercial buildings fell 1.03 per cent between January and February, the largest monthly decline since at least 1993, when the industry was emerging from a massive slump. The fall in national property prices comes as the volume of deals has slowed sharply, after banks have retrenched on lending. The market for commercial mortgage-backed securities has largely dried up since August.