Commercial Property Price Index
Pan-European Commercial Property Price Index
Increasing Sector Divergence
London, 7 July 2020 - The Green Street Commercial Property Price Index increased by 1.1% this past quarter. The increase in the index, which measures pricing of a broad swath of Pan-European commercial properties, was attributed to the industrial and office sectors. Industrial values are showing strength and potentially trending slightly above pre-Covid levels. After a 6% decline from the pre-Covid peak in April, office values are proving resilient. Retail values have yet to find a bottom as an onslaught of retailer bankruptcies stymy investor interest.
“We’re still in the early stages of assessing the full impact the pandemic has had on Pan-European commercial property values, but down about 5% from the prior peak is still a good betting line,” said Peter Papadakos, Managing Director at Green Street Advisors. “Many countries are well into reopening their economies, and, while transactions are limited, there is increasing evidence that volumes are recovering. Meanwhile pricing trends that were already in place pre-Covid continue unabated. Industrial assets are garnering strong investor interest, while most participants are having trouble getting comfortable with the risks in the retail sector at asking prices.”
Green Street Commercial Property Price Index
Indexed to 100 in August 2007Download CPPI Report Download CPPI Data
Core Sector Average is equally-weighted between the Industrial, Office, and Retail sectors.
Change in Commercial Property Values
Amount property values have increased over this period
(as of 07/07/2020)
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.