Good news for commercial property investors: prices are on the rise.
After months of sluggish growth, U.S. commercial property values grew 2% in May, according to the Green Street Commercial Property Price Index, released Thursday.
The index, which focuses on higher-quality properties around the country owned by real estate investment trusts, is up 4% year-to-date, and 9% above its 2007 high.
The increased momentum comes as REITs have enjoyed something of a rally in the first half of the year, reversing a 2013 slump as worries about rising interest rates have subsided. The Dow Jones Equity All REIT Total Return Index is up more than 15% since January, compared with less than 2% for the Dow Jones Industrial Average.
“It’s likely the trend continues,” Peter Rothemund, an analyst at Green Street Advisors, said in a news release. “Real estate pricing currently looks attractive.”
