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Property Pricing Ekes Out Modest Gains for 2019
The Green Street Commercial Property Price Index was unchanged in December. For full-year 2019, the all-property index increased by 2.5%—a modest increase, yet better than expected.
“At the beginning of the year, it looked like 2019 might spell the end of the decade-long run of property price increases,” said Peter Rothemund, managing director at Newport Beach, CA-based Green Street. “But as the market’s worries subsided — the economy held up, the Fed went from raising rates to cutting and a trade détente set in — commercial property prices rose modestly. With interest rates near record lows and risk appetites back to normal levels, pricing should continue to see support in 2020.”
The biggest gainer in year-over-year pricing was manufactured home parks, for which prices appreciated by 16% during 2019, followed by industrial at 13% and apartments at 6%. The year’s biggest pricing decline was for malls, which retreated by 11%.
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