This CPPI ® report is just a taste of Green Street's 1,000+ research reports published per year that deliver top-quality, actionable analytics, empowering our clients to make better and faster investment decisions. Contact Us for a demo, trial, or full access to Green Street's platform of CRE intelligence.
This is just a taste of Green Street's extensive proprietary time series data we offer clients to make better and faster investment decisions. Contact Us for a demo, trial, or full access to Green Street's platform of CRE intelligence.
Newport Beach, CA, September 6, 2024 — The Green Street 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.
“Commercial property prices have increased over the past few months as bond yields have declined," said Peter Rothemund, Co-Head of Strategic Research at Green Street. "There's a good chance the momentum in pricing continues. 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."
Green Street's Commercial Property Price Index ® is a time series of unleveraged U.S. commercial property values that captures the prices at which commercial real estate transactions are currently being negotiated and contracted. Features that differentiate this index are its timeliness, its emphasis on high-quality properties, and its ability to capture changes in the aggregate value of the commercial property sector. Learn more.
Green Street's Commercial Property Price Index is a time series of unleveraged Pan-European commercial property values that captures the prices at which commercial real estate transactions are currently being negotiated and contracted. Features that differentiate this index are its timeliness, its emphasis on average institutional quality properties, and its ability to capture changes in the aggregate value of the commercial property sector.
All Property CPPI ® weights: retail (20%), office (17.5%), apartment (15%), health care (15%), industrial (10%), lodging (7.5%), net lease (5%), self-storage (5%), manufactured home park (2.5%), and student housing (2.5%). Retail is mall (50%) and strip retail (50%).
Core Sector CPPI ® weights: apartment (25%), industrial (25%), office (25%), and retail (25%).
September 6, 2024
There are significant differences between the Green Street CPPI ® and other indices that track commercial property prices. Green Street’s CPPI ® is based on frequently updated estimates of price appreciation of the property portfolios owned by the REITs in its coverage universe. Other indices are based on closed transactions or formal appraisals and reflect market prices from several months earlier.
Green Street's Pan-European Real Estate Analytics platform covers 30 of the most liquid European real estate markets across the industrial, office, retail, and residential property sectors. The Commercial Property Price Index is a time series of unleveraged property values across these sectors and markets, and captures the prices at which commercial real estate transactions are currently being negotiated and contracted. Features that differentiate this index are its timeliness, its emphasis on average quality properties, and its ability to capture changes in the aggregate value of the commercial property sector.
The index is based on Green Street's frequently updated estimates of price appreciation of the property portfolios owned by the REITs in its U.S. coverage universe. Since REITs own high-quality properties, the index measures the value of institutional-quality commercial real estate.
The index is based on Green Street's frequently updated estimates of price for the property portfolios of a typical commercial real estate investor. It is driven by the fundamental models maintained by the research team, which, in turn, are driven primarily by changes in market cap rates and net rental income.
Our index reflects changes in commercial property values as soon as we hear about them. That's one of the benefits of Green Street’s CPPI ® ; we don’t have to wait for deals to close. The index is published monthly and released within days of month-end, whereas other indices have a sizeable lag.
The Green Street index value is based on where commercial real estate would transact today. Other indexes, based on either closed transactions or formal appraisals, may reflect market prices from many months earlier.
We place more weight on high-quality properties, e.g. a New York skyscraper has a much greater impact than a suburban strip mall. Because our CPPI ® is value-weighted, it measures what’s happening to real estate prices in aggregate, similar to the Wilshire 5000 that measures what’s happening to the stock market in aggregate. Most property indices are equally-weighted.
Each sector index is created by GDP weighting individual market indexes. The sector indexes are then equal weighted to create the Pan-European Commercial Property Index. Akin to familiar stock price indexes (e.g., S&P 500), GDP value weighting provides a gauge of aggregate (as opposed to average) values. Equal-weighted indexes, by contrast, put the same emphasis on a Dusseldorf industrial building as they do a trophy London office building.
Join our Green Street community of real estate professionals! Get an inside look at some of our latest insights straight to your inbox. Enter your email address below:
Proprietary analytics and actionable intelligence for public and private market investors
Unbiased macro, sector, market, and company-level commercial real estate research and analysis
Exclusive market-moving news, deal insights, databases and market participant rankings
Strategic advice for commercial real estate investors and operators to enhance value for stakeholders
View Site Map© 2024 Green Street
© 2024 Green Street Advisors (UK) Limited is authorised and
regulated by the Financial Conduct Authority (FRN: 482269)
Green Street Advisors, LLC is a U.S. limited liability company doing business as Green Street. The Advisory business unit at Green Street is a state registered investment adviser and only offers US Advisory services through our California location. While the organization offers some investment advisory services, the U.S. Research, Data and Analytics along with the Green Street global news products and services are not provided in the capacity of an investment advisor or a fiduciary. Green Street Advisors (UK) Ltd., doing business as Green Street, is authorized and regulated by the Financial Conduct Authority (FRN 482269). React News is a trading name of Green Street UK. Our global organization maintains information barriers to ensure the independence of and distinction between our non-regulated and regulated businesses.
We do not SELL or SHARE consumers' information per the California Consumer Privacy Act (CCPA), the California Privacy Rights Act (CPRA), or the General Data Protection Regulation (GDPR), but may collect personal information from you for specified business purposes. Green Street adheres to the EU-U.S. DPF Principles with regard to personal data transferred from the European Union and the United Kingdom and the Swiss-U.S. DPF Principles with regard to personal data transferred from Switzerland. For more information regarding your data privacy and how we process your personal information, please read our Global Privacy Policy and Disclosures.
All verified transactions in the Sales Comp database have been comprehensively reviewed by a trained Data Associate who consults and vets all available sources to construct an accurate record of each sale. The Green Street Forecasting tool is an estimation of future events based on market trends in historical data that have proved to provide actionable insights during past market cycles. Green Street makes no representations or warranties as to any future performance of such metrics under any market cycles.
