Commercial Property Price Index
Pan-European Commercial Property Price Index
Property Prices Already Up 2.5% in ’21
Newport Beach, CA, April 7, 2021 — The Green Street Commercial Property Price Index increased by 1.4% in March. With last month’s gains, the all-property index is up 2.5% this year but still approximately 5% below pre-Covid levels. The best performing property type, industrial, is up 14% over the past year while prices of lodging and retail properties are down 10% and more.
“Property pricing has regained much of the ground lost during the pandemic and the average property is now only down about 5% vs. year-ago levels,” said Peter Rothemund, Managing Director at Green Street. “There’s still significant variation around that average, but low interest rates, a rebounding economy, and plenty of capital looking for a home have increased the bid for all property types and make further price increases this year likely.”
Green Street Commercial Property Price Index
Indexed to 100 in August 2007
Indexed to 100 in September 2007Download CPPI Report Download CPPI Data
All Property CPPI weights: retail (20%), office (17.5%), apartment (15%), health care (15%), industrial (10%), lodging (7.5%), net lease (5%), self-storage (5%), manufactured home park (2.5%), and student housing (2.5%). Retail is mall (50%) and strip retail (50%).
Core Sector CPPI weights: apartment (25%), industrial (25%), office (25%), and retail (25%).
Change in Commercial Property Values
Amount property values have increased over this period
What makes our commercial property price index unique?
There are significant differences between the Green Street CPPI and other indices that track commercial property prices. Green Street's CPPI is appraisal-based. Appraisal-based indices are only as good as the valuation estimates used to construct them, and Green Street has long devoted sizable resources to deriving accurate estimates of the values of the properties owned by REITs. Most other indices are transaction-based.
Green Street's Pan-European Real Estate Analytics platform covers 25 of the most liquid European real estate markets across the industrial, office, retail, and residential property sectors. The Commercial Property Price Index is a time series of unleveraged property values across these sectors and markets, and captures the prices at which commercial real estate transactions are currently being negotiated and contracted. Features that differentiate this index are its timeliness, its emphasis on average institutional quality properties, and its ability to capture changes in the aggregate value of the commercial property sector.