At a glance
- The U.S. gauge is up 3.7% over twelve months.
- The index tracks unleveraged U.S. commercial property values at the prices where transactions are currently being negotiated and contracted.
- Allocators using transaction-based marks see the October decline leave the twelve-month gain at 3.7%, while Green Street said the 10-year Treasury near 5% could keep cap rates roughly flat.
Green Street's Commercial Property Price Index fell 0.7% in October, according to a Nov. 5 release. The U.S. gauge is up 3.7% over twelve months.
The index tracks unleveraged U.S. commercial property values at the prices where transactions are currently being negotiated and contracted. Peter Rothemund, co-head of strategic research at Green Street, said in the release: "The recent decline in bond yields is encouraging, but investors are still dealing with a 10-year Treasury that is close to 5%." He added that cap rates may not change much: "It's possible that cap rates don't wind up changing too much."
Allocators using transaction-based marks see the October decline leave the twelve-month gain at 3.7%, while Green Street said the 10-year Treasury near 5% could keep cap rates roughly flat.
The October reading follows a 1% decline in Green Street's European index as bid yields widened, as Private Wealth Daily previously reported.
The recent decline in bond yields is encouraging, but investors are still dealing with a 10-year Treasury that is close to 5%.Peter Rothemund, co-head of strategic research at Green Street
Reported by the Sectors desk from Green Street News and IJGlobal. Published . Corrections