Property prices decline 5% in Q2

The Green Street Commercial Property Price Index® declined 3.7 percent in June. The all-property index is down 4.9 percent from its March high.

“The repricing that has occurred in bonds and stocks is finally evident in the commercial property market,” said Peter Rothemund, co-head of strategic research at Green Street. “Price discovery is still taking place, and economic uncertainty and interest rate volatility make that challenging, but prices of most properties are down 5 percent-plus from recent highs. In a few sectors, pricing has held up better.”

Green Street's Commercial Property Price Index® is a time series of unleveraged U.S. commercial property values that captures the prices at which commercial real estate transactions are being negotiated and contracted. Features that differentiate this index are its timeliness, its emphasis on high-quality properties, and its ability to capture changes in the aggregate value of the commercial property sector.