According to a report released by the Newport Beach, CA-based research and advisory firm on Friday, the Green Street Commercial Property Price Index remained unchanged in September. Despite experiencing annual declines for several months prior, the all-property index has seen a 3% increase this year.
Peter Rothemund, co-head of strategic research at Green Street stated that they anticipate further appreciation in property prices due to a decline in bond yields over recent months. This decrease makes commercial real estate more appealing to investors.
In September, all property types included in the index showed no change in pricing. However, when compared year-over-year (Y-O-Y), there was a 3.1% decrease overall. Two specific property types – apartments and shopping malls – did experience Y-O-Y growth.
Green Street’s CPPI is an unleveraged time series that tracks U.S commercial property values by monitoring current negotiation and contract prices for these properties. It is based on frequent updates of estimated price appreciation from REIT-owned portfolios within their coverage universe located across the United States.
