Commercial Property Price Index
Pan-European Commercial Property Price Index
Fundamentals in Flux
London, 6 October 2020 - The Green Street Commercial Property Price Index increased by 0.8% this past quarter. The increase in the index, which measures pricing of a broad swath of Pan-European commercial properties, was attributed to the industrial and office sectors. Industrial values continue to trek higher and sit ~5% above pre-Covid levels. Office values have proven resilient increasing 1.4% this quarter, but still trade below the pre-Covid peak. Retail values continued to trickle lower as renewed lockdown measures and tenant concerns plague the sector.
"We’re more than half a year into the Covid-pandemic, and, in aggregate, Pan-European property values still rest below early 2020 pricing” said Peter Papadakos, Managing Director at Green Street. “Transaction volumes were starting to bounce back strongly, but a second wave currently spreading across Europe may impact the recovery. Readily available debt financing for high quality sectors and assets leased to strong credit tenants has aided investor appetite. However, high risk sectors, such as retail, or office assets with cashflow concerns are having trouble garnering investor interest.”
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, and Retail sectors.
Change in Commercial Property Values
Amount property values have increased over this period
(as of 10/06/2020)
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.