National + Finance | May 4, 2023

Commercial property prices have declined by an average of 15% since a year ago, according to Green Street

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.

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Green Street's Rothemund

About Paul Bubny

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).

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