Commercial Property Price Index®
Pan-European Commercial Property Price Index
Commercial Property Price Declines Slowing
Newport Beach, CA, December 6, 2022 — The Green Street Commercial Property Price Index® decreased by 0.6% in November. The index—a measure of pricing for a broad spectrum of institutional quality property—has fallen 13% this year.
“2022 has been all about interest rates, and the negative impact they’ve had on values,” said Peter Rothemund, Co-Head of Strategic Research at Green Street. “The good news is that commercial property valuations have improved quite a bit over the past several weeks as bond yields have retreated. While pricing may continue to go down, the large moves should be behind us.”
Green Street Commercial Property Price Index®
Green Street Commercial Property Price Index
Indexed to 100 in August 2007
Indexed to 100 in September 2007Download CPPI® Report Download CPPI® Data
All Property CPPI® weights: retail (20%), office (17.5%), apartment (15%), health care (15%), industrial (10%), lodging (7.5%), net lease (5%), self-storage (5%), manufactured home park (2.5%), and student housing (2.5%). Retail is mall (50%) and strip retail (50%).
Core Sector CPPI® weights: apartment (25%), industrial (25%), office (25%), and retail (25%).
Change in Commercial Property Values
Amount property values have increased over this period
December 6, 2022
What makes our Commercial Property Price Index® unique?
There are significant differences between the Green Street CPPI® and other indices that track commercial property prices. Green Street's CPPI® is appraisal-based. Appraisal-based indices are only as good as the valuation estimates used to construct them, and Green Street has long devoted sizable resources to deriving accurate estimates of the values of the properties owned by REITs. Most other indices are transaction-based.
Green Street's Pan-European Real Estate Analytics platform covers 25 of the most liquid European real estate markets across the industrial, office, retail, and residential property sectors. The Commercial Property Price Index is a time series of unleveraged property values across these sectors and markets, and captures the prices at which commercial real estate transactions are currently being negotiated and contracted. Features that differentiate this index are its timeliness, its emphasis on average institutional quality properties, and its ability to capture changes in the aggregate value of the commercial property sector.