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Green Street: CRE Pricing Unchanged in December, Down 10% Y-O-Y
The Green Street Commercial Property Price Index was unchanged in December 2023, ending the year down 10%. The all-property index, a measure of pricing for institutional-quality commercial real estate, is 22% below its March 2022 peak.
“The correction in real estate pricing that began two years ago appears to have run its course,” said Peter Rothemund, co-head of strategic research at Green Street. “Commercial real estate is now fairly priced versus yields on corporate bonds, and market pricing of listed REITs suggests the same.”
By property type, office has seen the steepest declines both on a year-over-year basis and in comparison to its March ’22 peak, with drops of 25% and 35%, respectively. Malls represented the only property type to see a slight increase in pricing over the past year, yet prices for that sector are down 20% from their peak. Faring best relative to the peak is lodging, while also experienced one of the smaller Y-O-Y pricing declines.
- ◦Sale/Acquisition
