Commercial Property Price Gains Step on the Accelerator
The Green Street Commercial Property Price Index increased 6.3% in August. The all-property index has increased 17% this year and is now 8% higher than it was before the coronavirus pandemic began.
“Property prices have been increasing all year, but things have accelerated recently,” said Peter Rothemund, co-head of strategic research at Green Street. “Over the past couple of months, property prices are up 9% on average, and gains in some property sectors have been even larger. While the pace of appreciation may slow, further increases in pricing seem inevitable.”
Currently, industrial pricing is the front-runner for pricing gains compared to pre-COVID levels, up 40% from prior to the pandemic, Green Street says. It also leads in monthly pricing gains, up 17% compared to July.
On a 12-month basis, self-storage has posted the biggest gains at 47%. All sectors saw monthly increases from July except student housing and net lease.
Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces.
Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications.
Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).