Progression & Regression

The principles of progression and regression describe how the value of a property is influenced by neighboring properties. Progression holds that a lower-value property can be positively affected — pulled upward in value — by being located near higher-value properties. Regression is the opposite: a higher-value property may be negatively impacted by proximity to lower-value ones.

These principles are used by appraisers and investors to assess the market positioning of a property within its submarket. Understanding progression and regression helps CRE professionals identify undervalued assets and anticipate how neighborhood composition may affect long-term investment returns.