The Green Street Commercial Property Price Index increased 0.4% in March. Over the past 12 months, the all-property index has increased 2.6% but remains 15.5% below the 2022 peak, according to the Newport Beach-based research and advisory firm.
“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. “The yield on the 10-year 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.”
On an annual basis, the best sectors for pricing recovery in March included office, student housing, strip retail centers and manufactured housing. However, office pricing remains 35% below its 2022 peak, according to Green Street data.
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