The Green Street Commercial Property Price Index remained steady in October, with no change from the previous month. However, there has been an overall increase of 3% in the all-property index this year.
According to Peter Rothemund, co-head of strategic research at Newport Beach-based Green Street, property values were expected to rise but were hindered by rising medium-term interest rates. If bond yields continue at their current levels, it is unlikely that real estate prices will see much growth.
This flatness was seen across all categories of commercial real estate including apartments and self-storage. On a year-over-year basis, individual sectors saw both increases and decreases in pricing.
In October alone, apartment prices increased by 12%, while malls and strip retail experienced smaller annual gains based on data from Green Street. Industrial and healthcare properties remained unchanged compared to last year’s prices; however other sectors saw declines ranging from -3% for net lease properties and manufactured home parks to -8% for office spaces and self-storage facilities.
Pictured: The headquarters of Green Street located at 100 Bayview Circle in Newport Beach.
