Green Street: CRE Pricing Down Nearly 5% from Q1
The Green Street Commercial Property Price Index declined by 3.7% in June. The all-property index is now down 4.9% from its high at the end of the first quarter.
“The repricing that has occurred in bonds and stocks is finally evident in the commercial property market,” said Peter Rothemund, co-head of strategic research at Green Street. “Price discovery is still taking place, and economic uncertainty and interest rate volatility make that challenging, but prices of most properties are down 5%+ from recent highs. In a few sectors, pricing has held up better.”
By product type, the steepest monthly pricing declines occurred in strip retail and net lease, with each down 7%, according to Green Street data. Although its June price drop was smaller, office was the only sector to have experienced declines in pricing over the past 12 months, while office and malls are both down from pre-COVID levels.
- ◦Sale/Acquisition
