Commercial Property Price Index
Pan-European Commercial Property Price Index
New Year, New Highs
London, 7 January 2022 - The Green Street Commercial Property Price Index increased by 2.2% during the fourth quarter of 2021. The index, which measures pricing of a broad swathe of Pan-European commercial properties, notched another new high, increasing 10% overall in 2021. Industrial values continue to go vertical, gaining over 5% in the most recent quarter. Residential values ticked up ~3.0% as investors appreciate the income stability. Declining yields drove office values above pre-pandemic highs, while retail values remain flat.
“2021 was a banner year for commercial real estate with asset values rising about 10%,” said Peter Papadakos, Managing Director at Green Street. “Commercial real estate benefitted from uncompetitive fixed income yields and rising inflation expectations. At the sector level, industrial continues to benefit from robust demand and asset values rose about 25%. On the opposite end of the spectrum, retail values were flat overall as investors continue to take a wait and see approach. The current macro backdrop provides some uncertainty with volatile movements in fixed income yields, however, the direction of Green Street’s next CPPI publication is likely higher.”
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
7 January 2022
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.