Index provider Green Street announced a decline in its Commercial Property Index in June of 3.7%, while for the previous 12 months the index remains up by 10%, officials reported.
The firm’s all-property index is down 4.9% from its March high.
Leading the way for the last 12 months are industrial and self-storage properties that are up 18% and 28% respectively.
“The repricing that has occurred in bonds and stocks is finally evident in the commercial property market,” said Peter Rothemund, co-head of strategic research at Newport Beach, CA-based Green Street. “Price discovery is still taking place, and economic uncertainty and interest rate volatility make that challenging, but prices of most properties are down 5%+ from recent highs. In a few sectors, pricing has held up better.”
Looking at real estate values on a pre-COVID basis, industrial properties are up 42%, while self-storage real estate has soared by 58%.
