Media & Recognition
FOR IMMEDIATE RELEASE
Media Contact:
Dan Malloy, Green Street Advisors, 949-640-8780, dmalloy@greenstreetadvisors.com
Commercial Property Values Tick up in February and are now up more than 10% since mid–‘09
Newport Beach, CA, March 2, 2010 – The Green Street Advisors Commercial Property Price Index (GSA CPPI) rose by 1% in February. Property values have now risen by a little more than 10% since hitting a trough in May ‘09, but values are still off by roughly 30% from the ‘07 peak.
While transaction volume remains low, pricing on transactions that have recently closed or that are in the works continues to surprise on the high side. Mike Kirby, Green Street's Director of Research, said, "The good news is that pricing has been firming since the middle of ‘09, especially in the last six months. Sellers are feeling less pressure to act, the outlook for fundamentals has become clearer, well-capitalized buyers are becoming plentiful, and return requirements across capital markets have come down. The bad news is that pricing is still far below the levels that prevailed from ‘05 through ‘07."
About the Green Street Advisors Commercial Property Price Index (GSA CPPI)
Green Street's Commercial Property Price Index is a time series of unleveraged U.S. commercial property values. The key feature that differentiates this index is its timeliness. The GSA CPPI captures the prices at which commercial real estate transactions are currently being negotiated and contracted. Other indices are based on closed transactions, and therefore convey info about market prices from several months earlier. Also, the Green Street index value for a given month is released within days of month–end, whereas other indices have a sizable lag. The Green Street index spots inflection points earlier than other indices.
Green Street Advisors, Inc.
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. Additional information on Green Street Advisors is available online at www.greenstreetadvisors.com.