Green Street: CRE Property Prices Tick Up in January

The commercial real estate market is showing signs of recovery as Green Street’s property price index rose 0.3% in January.
February 7, 2024
Green Street’s property price index rose 0.3% for the month.

Green Street’s property price index, a key indicator in the industry, increased by 0.3% for the month. The rise in property prices indicates a shift in the commercial real estate landscape, potentially signaling the end of a downward trend or at least a stabilization.

Driving the market: Various factors contribute to this uptick, including the formation of opportunistic debt vehicles aimed at acquiring properties at discounted prices and a narrowing bid-ask gap, indicating improved market confidence. Even major players like BlackRock are expressing confidence in the market’s recovery, advocating for investment in commercial real estate after adjustments due to tight credit conditions last year.

Between the lines: While the overall trend suggests a positive outlook, not all sectors within commercial real estate are experiencing the same trajectory. The office sector, in particular, continues to face challenges, with values expected to decline further. This divergence highlights the nuanced nature of the market’s recovery, with certain sectors poised for growth while others grapple with ongoing challenges.

What they’re saying: “For most property types, pricing has probably hit its low,” stated Peter Rothemund, Co-Head of Strategic Research at Green Street. However, he cautioned that the office sector remains an exception, with values anticipated to continue declining.

CRE Daily is a digital media company covering the business of commercial real estate. Our mission is to empower professionals with the knowledge they need to make smarter decisions and do more business.
RECENT NEWSLETTERS
View All
CRE Mortgage Debt Spikes Despite Fewer Originations
June 20, 2024
READ MORE
Retail Sales Decline Again, Strengthening Argument for Rate Cut
June 19, 2024
READ MORE
NYC Board Approves Rent Hike for 1M Stabilized Apartments
NYC Board Approves Rent Hike for 1M Stabilized Apartments
June 18, 2024
READ MORE
Yardi: U.S. Multifamily Market Outlook – Summer 2024
June 17, 2024
READ MORE
Join 65k+
  • operators
  • developers
  • brokers
  • owners
  • landlords
  • investors
  • lenders

who start their day with CRE Daily.

The latest news and trends in commercial real estate delivered to your inbox. Get smarter about what matters in just 5-minutes or less.