According to the Newport Beach, CA-based analytics and advisory firm, Green Street, there was little change in the Green Street Commercial Property Price Index for January. While there has been a 4.5% increase over the past year, it is still 18% lower than its previous peak in 2022.
Peter Rothemund, co-head of strategic research at Green Street stated that “property prices have remained stagnant for two consecutive months.” He also added that they do not anticipate much change in the near future as real estate is currently priced fairly. However, if interest rates decrease further then cap rates may see some adjustments.
In December of last year compared to this month’s data from Green Street shows no significant changes except for two index values which experienced slight decreases: strip retail by 0.5%, and core sector by a smaller margin.
Green Street’s data indicates that most property types have seen an increase in pricing over the past year with only office spaces lodging and self-storage seeing minimal declines (less than 5%). This suggests overall stability within commercial property pricing despite some minor fluctuations.
