Commercial Property Price Index
Pan-European Commercial Property Price Index
Property Prices Likely to Rise in 2021
Newport Beach, CA, January 7, 2021 — The Green Street Commercial Property Price Index was unchanged in December. For the year, the all-property price index declined 8%. Price changes were not uniform across property types. Industrial and manufactured home park values increased about 10% in 2020, while pricing of sectors hardest hit from the pandemic fell 15-25%.
“Property pricing ended the year down almost 10% on average, but that’s a better outcome than many expected earlier in the year,” said Peter Rothemund, Managing Director at Green Street. “A quicker-than-expected return of economic activity and remarkable success on the vaccine front played important roles, but the largest support for pricing has come from even lower interest rates. With rates so low across the board—Treasuries, investment grade, high yield—it is easy to see real estate prices increase from here.”
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
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.