CRE Price Appreciation Likely to Maintain Slow Pace in 2026

The Green Street Commercial Property Price Index decreased 0.1% in December 2025. Over the past 12 months, the all-property index has increased 2.3% while remaining down 15.9% from the 2022 peak.

“Property prices increased 2% last year, and that’s about where I’d set the line for ’26,” said Peter Rothemund, co-head of strategic research at Newport Beach, CA-based Green Street. “Real estate is fairly valued versus corporate bonds, so unless medium-to-long-term interest rates move downward, it’s unlikely we’ll see much price appreciation this year.”

Driving the monthly decline in December was pricing for healthcare properties, with all other sectors remaining flat. However, healthcare pricing has posted some of the strongest annual gains among property sectors, along with data centers and strip retail. At the other end of the spectrum, prices for apartment, hotel, mall and net lease properties have remained flat compared to December 2024, according to Green Street.

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