Commercial Property Price Index
Pan-European Commercial Property Price Index
Covid Pricing Property Type and Asset Specific
Newport Beach, CA, September 3, 2020 — The Green Street Commercial Property Price Index increased 1.3% in August. Values for industrial, manufactured home park, student housing, and apartments all increased, while pricing of other property sectors was unchanged. The all-property index is 10% below pre-Covid levels, though pricing varies significantly across property sectors.
“Prices of most properties are lower than they were six months ago, and 10% works as a rule of thumb, but it oversimplifies what’s taking place,” said Peter Rothemund, Managing Director at Green Street. “Prices of properties with income streams that will be largely unaffected by the pandemic—either because of property type, lease structure, or some combination of the two— are at, or near, record highs. At the other end of the spectrum, pricing of those assets most impacted—lodging and some retail—has moved so much than buyers and sellers are still trying to figure it out.”
Green Street Commercial Property Price Index
Indexed to 100 in August 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
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.