Green Street: Commercial Property Prices Up 3.3% This Year

(Illustration courtesy of Green Street)

Green Street, Newport Beach, Calif., reported its Commercial Property Price Index increased 1.6% in August. The index–a measure of pricing for institutional-quality properties–is up 3.3% this year.

Peter Rothemund, Co-Head of Strategic Research at Green Street, noted commercial property prices have increased over the past few months as bond yields have declined. “There’s a good chance the momentum in pricing continues,” he said. “Property prices have not risen as fast as bond yields have fallen, and share prices of many listed REITs are now higher than the underlying value of their properties.”