CRE Values Keep Sliding, Down 15% From Last Year

apartments, multifamily

Commercial real estate property prices are down sharply compared with a year ago, according to Green Street, with its commercial property price index down 15.2% from March 2022. The index is off 0.2% compared with February 2023.

Some property types have been hit harder than others year-over-year, but according to Green Street, all property types have lost some ground.

Office, a sector under pressure from tepid occupancies as hybrid work schedules solidify, lost 25% of its index value since a year ago, though it was unchanged compared to February.

“Office has seen the largest price declines, where even high-quality properties are down 25% over the past year,” Green Street co-Head of Strategic Research Peter Rothemund said in a statement.

Hit almost as hard, despite the demand for the sector, was multifamily, with its index value down 21% from last year and also unchanged from February.

Most other sectors saw double-digit annual drops in their valuation indexes, including industrial, down 13%; strip retail, down 14%; and malls, down 15%. Compared with a year ago, the only sector close to the same valuation is lodging, down only 1%.

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