The Green Street Commercial Property Price Index was essentially unchanged in January, the Newport Beach, CA-based analytics and advisory firm said. Over the past 12 months, the all-property index has increased 4.5% but remains 18% off its most recent peak in 2022.
“Property prices were unchanged for a second month,” said Peter Rothemund, co-head of strategic research at Green Street. “Looking forward, we don’t expect much to change. Real estate is priced fairly, so unless interest rates head lower, cap rates are unlikely to change.”
Although the all-property index remained flat compared to December 2024, two index values experienced downward movement in pricing during the month. Strip retail prices eased down by 0.5%, and there was a smaller decrease in the core sector index value.
Most but not all property types have seen pricing increases over the past 12 months, according to Green Street data. The exceptions are office, lodging and self-storage, although by less than 5% in each case.
Source: connectcre.com
