New Green Street CPPI Points to Lower Pan-European Property Values

London, United Kingdom, 05 May 2020 -- Green Street’s newly launched Pan-European Commercial Property Price Index (CPPI) decreased by 7.5% from its recent pre-Covid peak. The decline in the index, which measures the pricing of a broad swath of Pan-European commercial properties, was due to retail and office values. Industrial values are up slightly over the last quarter, but still 1% lower from the recent peak.

“The commercial real estate transaction market has largely come to a standstill as buyers and sellers adjust their underwriting expectations and try to agree on a fair price,” said Peter Papadakos, Managing Director at Green Street Advisors. “During periods of wide bid-ask spreads, asset values often move closer to the bid than the ask. There is little to no investor demand in the retail sector and waning investor demand for sub-prime office buildings today. However, high-quality office and most industrial assets are still likely to trade at punchy capital values per square meter.”

About the Green Street Commercial Property Price Index

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.

About Green Street Advisors

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. Additional information on Green Street Advisors is available online at www.greenstreetadvisors.com.

Green Street's US Research, Data, and Analytics products along with its global news publications are not provided as an investment advisor nor in the capacity of a fiduciary.

Contact:

Green Street Advisors

Gabriella Peak (Europe)
gpeak@greenstreetadvisors.eu.com