**CRE Price Appreciation Likely to Maintain Slow Pace in 2026**
The Green Street Commercial Property Price Index recorded a slight decline of 0.1% in December 2025. Over the past 12 months, the index has risen by 2.3%, although it remains 15.9% below its peak in 2022.
“Property prices increased 2% last year, and that’s about where I’d set the line for ’26,” said Peter Rothemund, co-head of strategic research at Newport Beach, California-based Green Street. “Real estate is fairly valued versus corporate bonds, so unless medium-to-long-term interest rates move downward, it’s unlikely we’ll see much price appreciation this year.”
The monthly decrease in December was primarily driven by declining valuations in the healthcare sector. Despite the dip, healthcare properties have been among the strongest performers over the past year, along with data centers and strip retail. In contrast, sectors such as apartments, hotels, malls, and net lease properties have shown no significant pricing movement compared to December 2024.
As the market enters 2026, experts suggest a tempered outlook for commercial real estate price growth, aligning with broader economic uncertainty and ongoing interest rate pressures.
