The Commercial Property Price Index for Green Street saw a slight increase of 0.3% in January, following the trend from the end of 2023. Despite this, the all-property index, which measures pricing for high-quality commercial real estate properties, remains significantly lower than its peak in March 2022 and has decreased by almost 9% year-over-year.
According to Peter Rothemund, co-head of strategic research at Green Street based in Newport Beach, CA., most property types have reached their lowest pricing point. However, values in the office sector are expected to continue declining.
Green Street data shows that offices have experienced the largest declines both year-over-year and compared to their peak in 2022. On a positive note though apartments did see a strong rebound month-over-month but still remain lower compared to last year and their peak value.
This article was originally published on Connect CRE.
