US Commercial Property Values Up 9% from Pre-COVID-19 Levels
November 8, 2021 | James Sprow | Blue Vault
Commercial property prices in the U.S. increased 8.7% from pre-pandemic levels and edged 0.4% higher month over month in October, Green Street Advisors LLC said in a Nov. 4 report.
The Green Street Commercial Property Price Index, which captures the prices at which U.S. commercial real estate transactions are being negotiated and contracted, was up 20.3% across all asset types over the past 12 months.
“Rent growth is better than expected, interest rates are still extraordinarily low, and as a result, property prices keep setting new highs,” Green Street Co-Head of Strategic Research Peter Rothemund said.
The best-performing sectors are industrial and storage, with property values rising 41% and 40%, respectively, from before the onset of the COVID-19 outbreak. Over the past 12 months, storage property values soared 47% year over year, while industrial asset prices jumped 33%.
The mall, office and lodging segments also posted gains in property values over the past 12 months, but still fall short of pre-COVID-19 levels. Mall and office property prices were down 13% and 6%, respectively, from pre-pandemic levels, while lodging values fell 4%.
This article was published by S&P Global Market Intelligence and not by S&P Global Ratings, which is a separately managed division of S&P Global.
Source: S&P Global
