August 7, 2018
The latest research by Newport Beach, CA-based Green Street Advisors shows commercial real estate pricing has plateaued over the past year and a half, and is at year-end 2016 levels. The Green Street Commercial Property Price Index, which measures values across five major property sectors, was essentially unchanged in July.
“It used to be that a rising tide was lifting all boats, but over the past couple of years there’s been a large divergence in the performance of hot and cold property sectors,” said Peter Rothemund, senior analyst at Green Street Advisors. “Values of industrial properties, manufactured home parks, and student housing are up 15% and more over those two years, while prices of shopping centers and malls have declined significantly. Price appreciation in other sectors has been modest.”
The aggregate CRE price index rose 1% over the past 12 months, while the industrial sector experienced the largest gain, rising 12% during that same time period, reports Green Street. Interestingly, a pair of less-heralded property categories, manufactured home parks and student housing, both rose 10% over the past 12 months.
For comments, questions or concerns, please contact Dennis Kaiser