Commercial Property Price Index®
Pan-European Commercial Property Price Index
Back to Covid-Era Lows
London, 10 January 2022 – The Green Street Commercial Property Price Index decreased by 1.6% during the fourth quarter of 2022. The index, which measures pricing of a broad swathe of Pan-European commercial properties, is c.16% below its recent peak. Low starting yields continue to weigh on the industrial and residential sectors, down 4.8% and 6.2% last quarter, respectively. Office asset prices are roughly stable after falling substantially in the first nine months 2022. The retail bid is improving due to high starting yields and a stable income outlook.
“2022 was a tough year for commercial real estate asset pricing,” said Peter Papadakos. “Asset price declines last year were purely a discount rate story due to rising real yields as operating fundamentals held up surprisingly well across all four sectors. Landlords have by and large successfully pushed absolute rents higher in the face of inflation. Commercial real estate at the Pan-European level still screens slightly expensive relative to investment alternatives such as fixed income and public PropCos.”
Green Street Commercial Property Price Index®
Green Street Commercial Property Price Index
Indexed to 100 in August 2007
Indexed to 100 in September 2007Download CPPI® Report Download CPPI Data
Core Sector Average is equally-weighted between the Industrial, Office, Residential, and Retail sectors.
Change in Commercial Property Values
Amount property values have increased over this period
January 10, 2023
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.