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NEWPORT BEACH, CA—The property-price index needle continued itsslow and steady upward climb last month. According to GreenStreet Advisors Inc., the Green Street CommercialProperty Price Index increased by about .5% in June,showing that property appreciation has gained momentum over thepast few months and values are now at or above 2007 highs in nearlyevery major property sector.
Peter Rothemund, an analyst at Green StreetAdvisors, says, “Cap rates are starting to movelower again. They're down 10 to 20 bps over the last three months,and consequently, property values are higher. That pattern—lowercap rates and higher values—is likely to continue. Interestrates that are near historic lows will push propertyvalues higher.”
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
