Commercial Property Price Index
Pan-European Commercial Property Price Index
Property Prices Down 11% YTD
The Green Street Commercial Property Price Index declined by 0.7% in May. Prices of lodging properties were lowered another 10%, while those of other property types were largely unchanged from the prior month. The index is down 11% this year.
“It’s too early to be definitive, but at this point, 10%, plus or minus, feels like a good betting line for Covid’s impact on pricing,” said Peter Rothemund, Managing Director at Green Street Advisors. “Of course, there are relative winners and losers. Property types such as industrial, manufactured home parks, and self-storage are experiencing only modest slippages in pricing, while the most impacted sectors — lodging and malls — may see declines at least twice as large as the average by the time the dust settles.”
Green Street Commercial Property Price Index
Indexed to 100 in August 2007Download CPPI Report Download CPPI Data
All Property CPPI weights: retail (20%), office (17.5%), apartment (15%), health care (15%), industrial (10%), lodging (7.5%), net lease (5%), self-storage (5%), manufactured home park (2.5%), and student housing (2.5%). Retail is mall (50%) and strip retail (50%).
Core Sector CPPI weights: apartment (25%), industrial (25%), office (25%), and retail (25%).
Change in Commercial Property Values
Amount property values have increased over this period
What makes our commercial property price index unique?
There are significant differences between the Green Street CPPI and other indices that track commercial property prices. Green Street's CPPI is appraisal-based. Appraisal-based indices are only as good as the valuation estimates used to construct them, and Green Street has long devoted sizable resources to deriving accurate estimates of the values of the properties owned by REITs. Most other indices are transaction-based.
Green Street's Pan-European Real Estate Analytics platform covers 25 of the most liquid European real estate markets across the industrial, office, and retail property sectors. The Commercial Property Price Index is a time series of unleveraged property values across these sectors and markets, and 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 average institutional quality properties, and its ability to capture changes in the aggregate value of the commercial property sector.