Green Street Reports CRE Property Prices Increase in March

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Commercial property prices increased 0.4% in March, according to Green Street, Newport Beach, Calif.

The Green Street Commercial Property Price Index for all commercial properties has increased 2.6% over the past twelve months.

“I think a lot of investors were hoping that interest rates would be lower by now, and that cap rates would be too, but it hasn’t played out that way,” said Peter Rothemund, co-head of strategic research at Green Street.

Rothemund noted the yield on the 10-year Treasury briefly fell below 4%, “but the war with Iran has pushed Treasury yields up again. In that environment, we’re unlikely to see any increase in real estate pricing,” he added.

Green Street’s Commercial Property Price Index captures the prices at which commercial real estate transactions are currently being negotiated and contracted.