National + Finance | March 6, 2023

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.

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About Paul Bubny

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).

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