NEWPORT BEACH, CA—Commercial property prices remain strong as interest rates remain low, according to Green Street Advisors Inc. The independent research, trading and consulting firm reports that its commercial property price index was unchanged in July, staying on the same robust track it has been on for several months.

Values are now at or above 2007 highs in nearly every major property sector, the firm found, having a compression effect on cap rates. “Property pricing continues to be strong, as buyers continue to push cap rates lower,” says Peter Rothemund, an analyst at Green Street. “And who can blame them? Low interest rates across the capital markets make real estate returns look rather compelling to today's property investor.”

Strong pricing can now be seen in many sectors of the market, including the office sector, which had been lagging behind the others and has been one of the slowest to emerge from the recession. As GlobeSt.com reported earlier this week,

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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.

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