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Price Appreciation Picks Up Steam Again

NEWPORT BEACH,CA—“Cap rates, which had been unchanged for several quarters, have recently begun to move lower,” says Green Street's Peter Rothemund.

By Paul Bubny | Updated on June 05, 2014

NEWPORT BEACH, CA—Green Street Advisors said Thursday its Green Street Commercial Property Price Index increased by 2% in May, in contrast to the more lackluster price appreciation seen earlier this year. Values are now up 4% year-to-date, 5% year over year and 10% since the August 2007 peak, according to Green Street data.

“Property appreciation is starting to pick up. Cap rates, which had been unchanged for several quarters, have recently begun to move lower,” says Peter Rothemund, an analyst at Green Street. “It’s likely the trend continues. Real estate pricing currently looks attractive relative to bond yields.”

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