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Green Street: Commercial Property Pricing Drops 15% in March from a Year Ago
The Green Street Commercial Property Price Index decreased by 0.2% in March, the Newport Beach, CA-based analytics and advisory firm said. The index has fallen by 15% since property prices peaked a year ago.
“Transaction volumes remain low, but our estimates put the bid price about 15% lower than it was a year ago,” said Peter Rothemund, co-head of strategic research at Green Street. “The change in pricing varies by property type. Office has seen the largest price declines, where even high-quality properties are down 25% over the past year.”
Although office has withstood the largest year-over-year drop in pricing, that trend didn’t continue for the sector in March. It was among six property types in the CPPI for which pricing was flat compared to February.
The biggest monthly drop was for strip retail. Two property types—self-storage and lodging—actually managed modest gains in pricing from the previous month.
- ◦Sale/Acquisition
