Commercial Property Price Index®
Pan-European Commercial Property Price Index
Property Prices Fall Another 1% in February
Newport Beach, CA, March 6, 2023 — The Green Street Commercial Property Price Index® decreased by 1.4% in February. This all-property index has fallen 15% from its March ’22 peak, while the index tracking properties in core sectors is down 18%.
“Property prices are fighting against higher interest rates at both ends of the yield curve, and that’s a battle they’re not going to win,” said Peter Rothemund, Co-Head of Strategic Research at Green Street. “On average, pricing has fallen about 15% from its peak of a year ago, and unless we get some rate relief in the fixed-income markets it’s likely we’ll see further declines.”
Learn more about the changes to our Commercial Property Price Index®
Green Street Commercial Property Price Index®
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
March 6, 2023
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.