Commercial Real Estate Prices Steady as Market Matures: Report
Written by Michael Tucker
Commercial real estate asset prices have "plateaued" and transaction volume has moderated as the real estate cycle matures, reported Green Street Advisors, Newport Beach, Calif., and CoStar, Washington, D.C.
Green Street said its Commercial Property Price Index was unchanged in June. The index, which tracks the five major property sectors, has plateaued over the past 18 months and remains near year-end 2016 levels.
"The net result for the major property sectors may be no change, but some property types have done quite well over the past year and a half," said Green Street Advisors Senior Analyst Peter Rothemund. "Values for industrial, manufactured home parks and student housing are all up by double-digit amounts over that period. Retail has seen prices decline about 10 percent. Price changes in other sectors have been relatively small."