Commercial Property Price Index
Pan-European Commercial Property Price Index
Prices Increase 24% in 2021
Newport Beach, CA, January 7, 2022 — The Green Street Commercial Property Price Index® finished the year unchanged in December. The all-property index increased 24% in 2021 with robust price appreciation occurring in virtually every corner of the commercial real estate market.
“Much like the U.S. economy, real estate fundamentals in ’21 turned out to be a lot better than most expected at the start of the year. Add in low interest rates and private equity firms that have more money to put to work than ever before, and you get the kind of pop in pricing that we saw last year,” said Peter Rothemund, Co-Head of Strategic Research at Green Street. “It will be really hard to match last year’s pace, but many of the forces driving prices higher remain in place. Property prices could post another double-digit gain this year.”
Green Street Commercial Property Price Index
Indexed to 100 in August 2007
Indexed to 100 in September 2007Download CPPI Report Download CPPI Data
All Property CPPI weights: retail (20%), office (17.5%), apartment (15%), health care (15%), industrial (10%), lodging (7.5%), net lease (5%), self-storage (5%), manufactured home park (2.5%), and student housing (2.5%). Retail is mall (50%) and strip retail (50%).
Core Sector CPPI weights: apartment (25%), industrial (25%), office (25%), and retail (25%).
Change in Commercial Property Values
Amount property values have increased over this period
January 7, 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.