Commercial Property Price Index
Pan-European Commercial Property Price Index
Prior Peak in Sight
London, 7 April 2021 - The Green Street Commercial Property Price Index increased by 2.2% during the first quarter of 2021. The index, which measures pricing of a broad swathe of Pan-European commercial properties, is just shy of its pre-Covid peak. Industrial values continue to lead the pack, up ~4% this quarter, while retail values were "saved by the jab", logging the first positive quarter in over a year. Residential values increased ~1.7% while office values were flat as investors await return-to-office clarity.
“Commercial real estate, across the board, is on stronger footing than just a few months ago,” said Peter Papadakos, Managing Director at Green Street. “2020 was a year of bifurcation across Pan-European property sectors, but we’re starting to see positive price movements in most sectors. Vaccination efforts are allowing investors to underwrite cashflow projections with a higher degree of confidence whilst unprecedented fiscal and monetary support have helped keep borrowing costs low and distressed sellers at bay. Unlike in the U.S., inflation expectations have barely budged in much of Europe. Consequently, fixed income yields remain low from a historic perspective, boding well for real estate pricing prospects during 2021.”
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
(as of 4/7/2021)
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.