Trepp regularly watches property prices, using an index technique to show relative strength compared to some baseline year. Right now the Trepp Property Price Index, self-described as a "vital tool for gauging the health of commercial real estate," has seen a continuous decline since mid-2022.
Quarter over quarter, it declined 1.8% in Q2 of 2023 and 5.4% since the end of Q2 in 2022. "This trend continues the decline in CRE property prices that began in March 2022 with the initial interest rate hike," they wrote. "As interest rate hikes appear to be slowing down, some markets are showing signs of stabilizing prices."
The compilation of the figures "is an equally weighted index derived from sales transaction data, utilizing a repeat sales methodology."
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