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Green Street: CRE Pricing Increases in August
Continuing a reversal of a year-long trend toward price declines, the Green Street Commercial Property Price Index increased 1.6% in August from July. The index, a measure of pricing for institutional quality properties, is up 3.3% this year, although still down nearly 20% from its recent peak.
“Commercial property prices have increased over the past few months as bond yields have declined,” said Peter Rothemund, co-head of strategic research at Newport Beach, CA-based Green Street. “There’s a good chance the momentum in pricing continues. Property prices have not risen as fast as bond yields have fallen, and share prices of many listed REITs are now higher than the underlying value of their properties.”
All property types tracked by Green Street recorded month-over-month gains in pricing, except for lodging. On a year-over-year basis, though, only apartments and malls saw increases. Office currently has the steepest decline from its March 2022 peak.
Pictured: Green Street headquarters.
- ◦Sale/Acquisition
