Commercial Property Price Gains Step on the Accelerator
By: Paul Bubny via Connect News
The Green Street Commercial Property Price Index increased 6.3% in August. The all-property index has increased 17% this year and is now 8% higher than it was before the coronavirus pandemic began.
“Property prices have been increasing all year, but things have accelerated recently,” said Peter Rothemund, co-head of strategic research at Green Street. “Over the past couple of months, property prices are up 9% on average, and gains in some property sectors have been even larger. While the pace of appreciation may slow, further increases in pricing seem inevitable.”
Currently, industrial pricing is the front-runner for pricing gains compared to pre-COVID levels, up 40% from prior to the pandemic, Green Street says. It also leads in monthly pricing gains, up 17% compared to July.
On a 12-month basis, self-storage has posted the biggest gains at 47%. All sectors saw monthly increases from July except student housing and net lease.
Full Article by Paul Bubny: https://www.connectcre.com/stories/commercial-property-price-gains-step-on-the-accelerator/