Green Street Advisors’ Commercial Property Price Index (GSA CPPI) rose by 1 percent in May, despite low transaction volume.

According to Mike Kirby, Green Street’s director of research, a number of factors have combined to keep prices trending upwards.

“The rebound in pricing that began in earnest last fall has become more vigorous in recent months,” Kirby said.  “Sellers are feeling less pressure to act, the outlook for fundamentals has improved, well-capitalized buyers are plentiful, financing markets are recovering and return requirements across capital markets have come down. Prices have now returned to early 2005 levels, but they remain well below the levels that prevailed in ‘06 and ‘07.”

The GSA CPPI numbers indicate that property values have risen approximately 20 percent since May 2009. However, they still remain below the 2007 market peak by roughly 25 percent.