Commercial Prices are Recovering
but Still Down 6%

Commercial real estate prices continue to firm up, but the value of commercial real estate is still broadly down by 6% compared to one year ago, based on the Green Street Commercial Price Index, an appraisal-based index of the properties held by REITs. The decline has tapered off from the 10% decline in the second quarter of 2020. Among closed transactions valued at $2.5 million or over, sales prices rose 6.7% from one year ago, according to Real Capital Analytics. Among closed transactions of NAR commercial members which are typically below $2.5 million, sales price rose by 2% on average. Respondents reported strong price gains for land (+6%), industrial warehouses (+5%), and class B/C apartments (+5%). Sales prices of residential land were up 9% on average, according to NAR commercial members.