NEWPORT BEACH, CA-After rising robustly during the first half of last year, property values have remained virtually unchanged for the past several months. According to Green Street Advisors‘ Commercial Property Price Index, values remained the same in January and have been trending along at an inflationary-type pace.
Peter Rothemund, an analyst at Green Street, attributes the sluggish gains to current interest-rate levels. “Property values are moving higher, but it’s slow going. Over the past half a year, they’ve ticked up a percent and a half—rather pedestrian compared with the robust gains of ’11 and ’12. And, so long as interest rates stay near current levels, we’re probably in for more of the same; it’s likely that property pricing continues on its current course.”
As GlobeSt.com reported in January, Green Street Advisors said that property appreciation has come to a virtual stop. The Newport Beach, CA-based REIT research firm said its Green Street Commercial Property Price Index for December stood at 105.7, unchanged from the previous month. The company’s pricing yardstick is indexed to 100 in August 2007.