Green Street

Videos and Interviews

Sep 7, 2023

Green Street’s Real-Time U.S. Commercial Property Price Indexes Explained

“The goal of our approach is to make our indices as real-time as possible.” - Joi Mar, Managing Director, Market Analytics

What makes Green Street’s Commercial Property Price Index (CPPI) unique? Research Managing Directors Joi Mar and Seth Laughlin discuss the topic in this brief clip – learn what makes Green Street’s powerful indexes differentiated from other comparable providers and see it in action by downloading our latest U.S. CPPI report and aggregate time series data.

Green Street’s timely CPPI index reflects real-time changes in commercial property values as soon as we hear about them, as it’s based on the transaction activity and asset pricing currently being negotiated and contracted in the market today. That’s one of the benefits of Green Street's CPPI; we don’t have to wait for deals to close, and therefore are able to deliver quick, early signals around market inflection points and potential investment opportunities. Other indices, based on closed transactions or formal appraisals, convey information several months old. The Green Street CPPI index value for a given month is also released within days of month-end, whereas other indexes have a sizable lag.  

Because our CPPI is value-weighted, it measures what’s happening to real estate prices in aggregate, similar to the Wilshire 5000 that measures what’s happening to the stock market in aggregate. Most property indices are equally weighted, which by contrast, put the same emphasis on a small suburban strip center as they do a Manhattan office building. Additionally, our index measures the value of institutional-quality commercial real estate by placing a higher weighting towards high-quality properties and major metros.