According to a recent announcement from the Newport Beach, CA-based research and advisory firm Green Street, the Green Street Commercial Property Price Index remained steady in December. However, there was an overall increase of 4.8% in property prices throughout 2024; despite this growth, prices are still down by 17.8% compared to their peak in 2022.
Peter Rothemund, co-head of strategic research at Green Street stated that “property prices saw a modest increase of about 5% last year.” He also noted that the outlook for this year is not as positive due to rising Treasury yields which may cause property values to plateau.
When comparing current pricing levels with those from the peak in 2022, all types of properties have seen declines except for mall properties which remain relatively stable. On a year-over-year basis however, there has been more variation among different sectors with apartments and malls seeing strong gains at rates of14% and17%, respectively.
While office spaces have experienced decreases over the past year along with self-storage and lodging properties according to data from Green Street; they have performed slightly better than these other two types on average.
The image shows headquarters building located at Newport Beach where Peter Rothemund works as co-head researcher.
Green Street: U.S Property Prices Show Nearly A Five Percent Increase Year-Over-Year
In December’s report released by Newport Beach based research firm -Green street- it was announced that The Green street commercial property price index showed no change since its previous release date.The index recorded an overall riseof four point eight percent during twenty twenty-four but still remains seventeen point eight percent lower than its record high backin twenty-twenty-two.Peter Rothemund who serves as one half head strategistat green streetsaid,”Lastyear we witnesseda fivepercent hikeinpropertyprices.However,the forecastforthisyearisn’tas promising.Due torising treasury yields in recent months,we can expect property prices to remain stagnant.”
When compared to the peak of twenty-twenty-two, all types of properties have experienced a decline except for mall properties which have maintained their stability. On a year-over-year basis,the picture is more diverse.The apartment and mall sectors showed the strongest gains at fourteen percent and seventeen percent respectively.
Accordingto Green street data,office spaces are amongthe three propertytypes thathave seena decreaseinprices over theyear.However,this sector has performed slightly better than self-storage or lodgingproperties.
The image showsGreen Street headquarters located in Newport Beach where Peter Rothemund serves as co-head strategist.
