Videos and Interviews
The Benefits of Market-RevPAF (M-RevPAF): Green Street’s Proprietary Metric Helps with Analyzing and Comparing Fundamentals Across CRE Property Sectors
Green Street’s Director of Research, Cedrik Lachance, reviewed our 2023-2027 expectations for commercial real estate operating fundamentals across property sectors in the U.S. He covered GDP, supply growth, Market RevPAF growth (Green Street proprietary metric), NOI growth and more. Watch the video to hear Green Street’s latest views. Changes in M-RevPAF, in particular, is highly correlated with changes in value, thus allowing market participants to readily summarize fundamentals and commercial property prices. But what is M-RevPAF? And what makes this Green Street proprietary metric so valuable?
M-RevPAF, short for Market Revenue per Available Foot, was developed by Green Street about 15 years ago to serve as a measure of the health of a market (or sector) that combines two key operating metrics, effective market rents and occupancy. By combining changes in market rents with changes in occupancy, M-RevPAF provides a portrait of market fundamentals in a single metric. It is designed to better facilitate comparisons of fundamentals across property sectors due to its uniform definition. Looking at Green Street’s M-RevPAF growth data across sectors, markets, and various macroeconomic scenarios can provide valuable insights into the performance and profitability of real estate investments.
Overall, analyzing M-RevPAF growth, alongside other operating fundamental metrics, provides a more comprehensive perspective on the fundamentals across property types and markets. Green Street’s robust M-RevPAF historical time series and forecasts arm our clients with thoughtfully differentiated datasets, empowering them to make more informed, data-driven decisions that identify opportunities to maximize returns and manage risk.
This is simply a taste of the actionable takeaways and thoughtful methodologies we deliver to our clients every day. Our insights are rich with conclusion-driven intelligence and top-quality, proprietary data. Incorporating up-to-date research and analysis like this is invaluable to crafting an effective CRE strategy. Speak with a member of our team today to learn how you can use Green Street’s research and intelligence in your strategy.
Looking for more insight in the meantime? Check out Green Street’s insights page to hear our team explain real-time U.S. Commercial Property Price Indexes.