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Commercial Property Pricing Slips in November, But Valuations Keep Improving
The Green Street Commercial Property Price Index decreased by 0.6% in November. The index, which measures pricing for a broad spectrum of institutional quality property, has fallen 13% this year, with much of that decline occurring in the past three months.
“2022 has been all about interest rates, and the negative impact they’ve had on values,” said Peter Rothemund, co-head of strategic research at Newport Beach, CA-based Green Street. “The good news is that commercial property valuations have improved quite a bit over the past several weeks as bond yields have retreated. While pricing may continue to go down, the large moves should be behind us.”
By property type, the sectors seeing the biggest pricing declines in November were apartments and net lease. Some sectors gained during the month, namely industrial and two property types that were hit hard during the pandemic: lodging and retail (both mall and strip centers).
- ◦Sale/Acquisition
