The Green Street Commercial Property Price Index declined by 1.3% last month, according to data released Monday by the firm.
The index’s decrease likely is attributable to lower values currently being placed on lodging, malls and seniors housing, Green Street noted. The move in mall pricing reflects bids before the COVID-19 shutdown, whereas lodging and seniors housing values were marked lower in anticipation of the pandemic’s large negative effect on those sectors. Prices of other property types still are under review, and index values will be adjusted when pricing has settled, said Peter Rothemund, managing director at Green Street Advisors.
“The property markets are in an adjustment period; it’s going to take some time for buyers and sellers to figure out what a new fair price is,” Rothemund said. “Prices of some property types should hold up relatively well, while those most affected could see 30% declines.”
Last month, Green Street Advisors analyst Lukas Hartwich predicted that the COVID-19 outbreak could reduce demand for senior housing and skilled nursing by as much as 15%.