Green Street Sees CRE Prices Reaching All-Time Highs
The Green Street Commercial Property Price Index increased 0.4% in October, continuing a run of all-time highs, the Newport Beach-CA advisory firm reported Thursday. The all-property index has increased 18% this year and is now 9% higher than it was before the pandemic.
“Rent growth is better than expected, interest rates are still extraordinarily low, and as a result, property prices keep setting new highs,” said Peter Rothemund, co-head of strategic research at Green Street. “That’s not true for mall, office, or lodging, all of which remain short of pre-COVID marks, but those sectors are the exceptions.
“Even with the laggards, commercial property in aggregate is up nearly 10% from pre-pandemic levels, and prices of the best performers—industrial and self-storage—are up four times that amount,” he continued.
After industrial and self-storage, the best performing sector is manufactured home parks, where prices are up 31% from pre-pandemic levels.
Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces.
Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications.
Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).