NEWPORT BEACH, CA-The Green Street Commercial Property Price Index was unchanged in September. Property pricing continues to drift sideways as the sharp increase in interest rates that occurred earlier this year has put a brake on the four-year-long recovery in property values.
“After a very strong upward run, property pricing appears to have settled in” said Peter
Rothemund, an analyst at Green Street Advisors. “It's likely that continues. Valuations look fair compared to interest rates that are much higher than they were six months ago, so there's no reason to expect a substantive move in property values.”
Green Street's Commercial Property Price Index is a time series of unleveraged U.S. commercial property values that captures the prices at which commercial real estate transactions are currently being negotiated and contracted. Features that differentiate this index are its timeliness, its emphasis on high-quality properties, and its ability to capture changes in the aggregate value of the commercial property sector.
Founded in 1985, Green Street Advisors is the preeminent independent research, trading, and consulting firm concentrating on Real Estate Investment Trusts (REITs), other publicly traded real estate securities, and the private commercial real estate markets in North America and Europe.
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