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NEWPORT BEACH, CA-Commercial-property values remained unchanged in June, interrupting a trend of continual increases following the recession, according to locally based Green Street Advisors Inc. The development prompts questions as to the durability of property-value recovery.

As GlobeSt.com reported in June, property values continued to increase above their 2007 highs, with the Green Street Commercial Property Price Index increasing by 3% in May. Property values had not only fully recovered the ground that was lost during the last downturn, but they were also several percentage points above their '07 highs.

After enjoying a robust recovering over the last four years, the question is whether this recovery will continue, particularly in the shadow of increasing interest rates. “Low interest rates have been the primary catalyst for the impressive rebounding property values, so the recent spike in rates begs the question of whether a reversal might lie ahead,” said Peter Rothemund, an analyst at Green Street Advisors, in a prepared statement. “However, because properties continue to offer a competitive return even against the backdrop of today's higher rates, a stall in pricing seems more likely than a substantive decline.”

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