Commercial Property Pricing Inches Down Another 1.4% in February
The Green Street Commercial Property Price Index decreased by 1.4% in February, the Newport Beach, CA-based analytics and advisory firm said Monday. The all-property index has fallen 15% from its March 2022 peak, while the index tracking properties in core sectors is down 18%.
“Property prices are fighting against higher interest rates at both ends of the yield curve, and that’s a battle they’re not going to win,” said Peter Rothemund, co-head of strategic research at Green Street. “On average, pricing has fallen about 15% from its peak of a year ago, and unless we get some rate relief in the fixed-income markets it’s likely we’ll see further declines.”
By property type, the office sector posted February’s biggest pricing declines on both a month-over-month and year-over-year basis. A few sectors, including lodging, net lease and self-storage, were unchanged from the previous month.