The Green Street Commercial Property Price Index increased 0.2% in February. Over the past 12 months, the all-property index has increased 2.5%, although pricing is still off from the 2022 peak by just under 16%.
“Deals are getting done, but with pricing in a fair spot, cap rates have been steady,” said Peter Rothemund, co-head of strategic research at Newport Beach, CA-based Green Street. “I don’t expect that will change until the yield on the 10-year Treasury breaks out of its recent range.”
Several of the property types tracked by Green Street were flat in February on a month-over-month basis. The two exceptions were industrial and data centers.
Similarly, data centers posted the strongest year-over-year property growth at 7%. Other property types posting modest Y-O-Y increases in pricing included industrial, office, strip retail and healthcare. Compared to the 2022 peak, office pricing still falls short by the highest percentage.
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