Green Street Advisors Expects Commercial Property Values to Drift Lower in 2016

Commercial Property Values to Drift Lower in 2016

Newport Beach, CA – December 10, 2015 – Green Street‘s Commercial Property Price Forecast helps predict the direction of real estate values over the next year.  It combines 1) the valuation signal sent by a comparison of real estate pricing against yields in the corporate bond market with 2) the price listed Real Estate Investment Trusts (REITs) are trading at relative to the underlying value of their properties.

“Green Street’s Commercial Property Price Forecast sent very bullish signals for real estate values from 2009 up until the first quarter of this year,” said Andy McCulloch, managing director of Real Estate Analytics for Green Street Advisors.  “Since then, however, the signals have become notably more bearish, and there is now a good chance that commercial real estate prices will be lower within the next twelve months.”

Green Street’s forecast has a proven track record predicting directional changes in commercial real estate pricing, though it is not precise enough to predict the magnitude of price moves.  Andy McCulloch explains the firm’s outlook for commercial real estate in a webinar accessible here.

 Green Street CRE Forecast Track Record

Another aspect of Green Street’s business is in-depth, detailed analysis of REITs.  The quality of the firm’s research is evident in the performance of its recommendations.  Green Street’s BUY recommendations would have generated hypothetical annualized total returns of 24% since 1993.

 Green Street REIT Recommendation Track Record

Past performance cannot be used to predict future performance.  View the full track record and disclosure here.

Green Street Advisors, LLC

Founded in 1985, Green Street Advisors is the preeminent independent research and advisory firm concentrating on the commercial real estate industry in North America and Europe.  The company is a leading provider of real estate analytics, research, and data on both the listed and private markets.  Green Street also offers investment research on Real Estate Investment Trusts (REITs) and trading services to equity investors.  Additional information on Green Street Advisors is available online at www.greenstreetadvisors.com.