Commercial Property Price Index
Pan-European Commercial Property Price Index
Commercial Property Pricing Shows Variation
Newport Beach, CA, October 6, 2020 — The Green Street Commercial Property Price Index was unchanged in September. The all-property index is 10% below pre-pandemic levels, but pricing is asset specific with significant variation by property type.
“Pricing of properties with little downside to rents—and those with a high-credit tenant and significant lease term—has held up; in some instances, values are higher than they were prior to the pandemic,” said Peter Rothemund, Managing Director at Green Street. “Prices of most other properties are lower by 5-15%. Lodging and malls are down even more than that. Transaction volume has been light, so for some property sectors it is tough to give precise estimates.”
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, and retail 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.