Green Street Sees Y-O-Y Pricing Drops in All Commercial Property Sectors
The Green Street Commercial Property Price Index decreased by 0.1% in April. The index, which tracks the pricing of institutional-quality commercial real estate, has fallen by 15% since property prices peaked a year ago.
“Prospective sellers may refuse to accept it, but that doesn’t change the fact that the bid price for most commercial properties is much lower than it was a year ago,” said Peter Rothemund, co-head of strategic research at Green Street. “On average, prices of institutional-quality properties are down 15% versus this time last year.”
The year-over-year price declines occurred across the board in each of the property sectors tracked by Newport Beach, CA-based Green Street. Some sectors fared better than others, with office suffering the biggest Y-O-Y drop in pricing at 25% and lodging outperforming any other sector in terms of values. Apartments ran a close second to office for price drops.