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Green Street: Property Pricing Increases 24% YTD
Commercial property pricing is up 24% year to date and is now 14% higher than it was prior to the pandemic, Green Street reported Monday. The Green Street Commercial Property Price Index increased 5.3% month-over-month in November.
Property price increases were widespread, with self-storage, industrial, and retail registering the largest month-over-month gains. On a year-over-year basis, self-storage pricing led with a 66% annual increase.
“Rent growth and occupancy are surprising to the upside and interest rates are incredibly low — the combination is having a strong effect on property prices,” said Peter Rothemund, co-head of strategic research at Newport Beach, CA-based Green Street.
He continued, “In aggregate, commercial property prices are approximately 15% higher than they were prior to COVID, and in the best performing sectors, we’ve seen gains of two, three, even four times that amount. The speed at which values are rising is unprecedented.”
- ◦Sale/Acquisition
