NEWPORT BEACH, California—Hotel property values are continuing to stagnate, according to Green Street Advisors Commercial Property Price Index.
The hotels index during February was 73.13, the same level it’s been since November. The index is down 3.1% from the 2011 number of 75.49 but up 32.5% from the figure two years ago of 55.20.
Source: Green Street Advisors
Other property sectors also are seeing values float sideways, according to Green Street’s research. For instance, the office index has remained at approximately 82 since August 2011.
“With the exception of (multifamily), we haven’t really seen values change since last summer,” Peter Rothemund, an analyst at Green Street, said in a news release. “But we’re still in a low-return environment, and with the capital markets now appearing to get a little more comfortable with the future, it wouldn’t be surprising to see a return of positive momentum.”
The apartment index ended February with the biggest month-to-month increase, edging upward by 1.7% to 103.39.
The month-to-month index reading for other property sectors in February were:
• Industrial: flat at 84.88
• Mall: flat at 96.64
• Office: down 0.1% to 82.74
• Strip: flat at 90.74
Green Street also reported that the Manhattan Office Property Price Index increased on a month-to-month basis by 1.1% during February to 79.40. Midtown office values increased by 1% while downtown remained flat, Green Street reported.
The Manhattan Property Price index still remains 20% below the 2007 peak.
Green Street said “weakness and uncertainty” in the financial services industry will “dampen” market fundamentals and transactions pace.