CRE Price Growth Up Last Year; 2022 Could See Double-digit Increases, Index Shows

Originally published on January 11, 2022, by Michael Tucker for Mortgage Bankers Association.

Green Street, Newport Beach, Calif., said its commercial property price index increased 24 percent in 2021 with robust price appreciation occurring in virtually every corner of the CRE market.

“Much like the U.S. economy, real estate fundamentals in 2021 turned out to be a lot better than most expected at the start of the year,” said Peter Rothemund, Co-Head of Strategic Research at Green Street. “Add in low-interest rates and private equity firms that have more money to put to work than ever before, and you get the kind of pop in pricing that we saw last year.”

Rothemund noted 2022 will not likely match last year’s pace, “but many of the forces driving prices higher remain in place,” he said. “Property prices could post another double-digit gain this year.”

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