Commercial Property Price Index®
Pan-European Commercial Property Price Index
Picking Up Speed
London, 9 July 2024 – The Green Street Commercial Property Price Index ticked higher by 0.5% in the second quarter (+0.9% year-to-date). Across sectors, hotel took gold, with a 2.0% increase in pricing in the quarter off the back of several notable transaction comps. The residential (+1.2%), industrial (+1.4%) and data centre (+0.7%) sectors follow closely, as buyers’ confidence builds momentum. The surge in investment liquidity in the retail sector suggests prices held steady in June. Heading in the opposite direction, B/B+ quality office bid pricing continues to slip (-1.0% in Q2), hampered by negative sentiment from buyers as well as lenders.
“A pickup in European transaction activity over the past three months suggests that buyers and sellers are finding common ground, with bid pricing nudging a tad higher across some sectors”, said Marie Dormeuil, Senior Analyst at Green Street. “Since the beginning of ’24, when we first noted that European commercial real estate was cheap versus fixed income, the former has outperformed the latter by c. 500 bps. By contrast, real estate looks no better than fair value versus REITs. The public market’s view is clear, and in line with our own fundamental work, namely industrial, hotel and data centre private market returns are expected to perform slightly better than retail and residential, while strongly outperforming the laggard office sector.”
Take a look at our U.S. Commercial Property Price Index
How is our index different than others that track commercial property prices?
Green Street Commercial Property Price Index®
Green Street Commercial Property Price Index
Indexed to 100 in August 2007
Indexed to 100 in September 2007
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
July 9, 2024