Green Street Property Price Index Unchanged in September

October 5, 2017 | James Sprow | Blue Vault

The Green Street Commercial Property Price Index was unchanged in September.  Over the past year, the index has barely moved, as modest increases to capitalization rates have offset growing rental income.

“Some properties have been stronger, but when you measure it in aggregate, commercial property values are at about the same level they were this time last year,” said Peter Rothemund, Senior Analyst at Green Street Advisors.  “Industrial, medical office and life science have been the big winners over the past year — values are up by double-digit percentages.  Retail has been weakest.”

Looking at the individual property sectors, Industrial is up 10% in value over the past 12 months and up 2% over the past three months.  Healthcare property values show a 5% increase over the past 12 months and are up 2% over the past three months. The healthcare index is made up of a blend of medical office, senior housing, skilled nursing and life science. Mall retail properties are down 6% in value over the past 12 months but up 1% over the past three months.  Strip retail properties have also been hit, down 5% in the last 12 months but up 1% over the past three months.

The aggregate index (CPPI) is flat over the past 12 months but up 1% over the last three months.  Compared to their 2007 peaks, self storage properties are up 72.8%, apartments are up 37.6%, healthcare properties are up 36.9% and malls are up 36.5%. The laggards among the sectors are lodging, down 9.8% since the peak in 2007 and office, up just 12.9%. 

All data is from Green Street Advisors at www.greenstreetadvisors.com.