CBRE CAP RATE SURVEY

CBRE CAP RATE SURVEY
A CBRE Publication
February 2013
In This Issue:
Overview pg 2
Office pg 5
Multihousing pg 12
Retail pg 19
Industrial pg 27
Hotels pg 31
Appendix pg 34
Click to Enter

IN THIS ISSUE:
Overview
Office
Multihousing
Retail
Industrial
Hotels Hotel
Appendix
United States | Overview
Cap Rate Survey
February 2013
>
2012 was a stand-out year for U.S. commercial real estate investment. Investors expanded their activity in the sector due to the stable yields
offered amid an environment where low and unstable returns in other asset classes prevailed. Figures from Real Capital Analytics (RCA) show
that transaction activity in 2012 returned to the average pace set in 2004 and 2005. The combination of individual property sales, portfolio plays
and entity-level transactions in the main commercial property sectors hit $261.7 billion for the year. This level represents a 35% increase from
year-end 2011.
Among the major property sectors, multihousing is the clear leader in terms of increases in sales volume over the last year. Transaction activity
totaled $84.6 billion, up 47% from year-end 2011. The same-store price index from RCA, the Commercial Property Price Index (CPPI), shows a
9.6% gain in asset values over the year. The retail and office sectors came in at a distant second to the multihousing sector in terms of increases in
transaction volume in 2012, with growth of 19.7% and 19.4%, respectively. In reality, these are both significant growth trends, and only look small
by comparison to the tremendous growth in the multihousing sector. With a 6.1% increase according to the CPPI, the office sector’s growth in sales
prices achieved outpaced that of the retail sector, which recorded only a 1.2% increase.
The industrial sector came in at the bottom on total sales volume with only 4.2% growth seen over year-end 2011. The headline figures, though,
are distorted by a major entity-level transaction in 2011 with the AMB/Prologis merger. For sales of individual assets, growth reached 29.3%, to
reach $25.7 billion in transactions for the year. Portfolio deals grew even faster, at a pace of 34.9%, totaling $10.3 billion in transaction value.
Clearly, there was investor interest in the industrial sector as well.
Looking at some of the major property subtypes, there are signs of a tentative move towards taking on risk. CBD office assets are perceived to
be less risky by investors, given the notion that there is more durable exit pricing and exit liquidity. This has significantly increased the appetite of
investors for these types of assets in the past couple of years, with deals in CBD submarkets accounting for nearly 54% of all office transactions in
2010 and 2011. This figure may not sound large, but the data from our local research teams suggest that CBD submarkets represent only about
36% of all competitive office inventory in the U.S.
Another example of a move to get exposure to risk assets can be seen among some cap rate spreads for different subtypes in the retail sector of
commercial properties. Our year-end Cap Rate Survey shows that for Class A stabilized neighborhood centers, the weighted average cap rate
was 6.4% across the 40 major markets surveyed. For Class A stabilized power centers, this figure stood at 6.9%, a roughly 60 basis point (bps)
2

IN THIS ISSUE:
Overview
Office
Multihousing
Retail
Industrial
Hotels Hotel
Appendix
United States | Overview (continued)
Cap Rate Survey
February 2013
>
pricing premium for this subtype, which is often viewed as riskier. By comparison, as recorded in our year-end 2010 survey, the cap rate for Class
A stabilized neighborhood centers stood at 6.9%. So investors are using the same cap rates today for these “riskier” assets as they did in 2010 for
the asset class viewed as less risky.
By this point in the cycle, many investors will need to look to somewhat riskier assets in search of greater returns. The NCREIF ODCE Index shows
that returns came in at 10.9% for year-end 2012. By contrast, in 2011 and 2010, average annual returns were a much stronger 16.2%. The
downshift in returns is a result of a slowdown in cap rate compression. The data from NCREIF show that roughly 50% of the value gains at the
property level in 2010 and 2011 came from the cap rate compression that accompanied the new flow of capital to the sector from yield-hungry
investors. Only one-quarter of the value gains in the last year came from cap rate compression. To achieve stronger returns, investors will need to
focus on asset types and markets with stronger income growth. This shift, however, often involves taking on more risks.
At year-end 2012, the office vacancy rate was 15.4% nationally, versus 16.0% for year-end 2011. This 60-bps decline in the national vacancy
rate came about from declining vacancy in both CBD and suburban submarkets; however, the composition of this decline was more heavily
weighted towards suburban submarkets. The vacancy rate for CBD submarkets fell 40 bps from a year earlier to hit 12.4%. The vacancy rate for
suburban submarkets fell more quickly, however, dropping some 60 bps from a year earlier to hit 17.1%. Overall, there is still more slack capacity
in the suburban submarkets, for while the current 17.1% is far better than the 18.7% level seen in 2010, it is still higher than the average of 16.1%
recorded since 1988. CBD vacancy rates, by contrast, are now below the long-term average of 12.8%. The increasing pace of suburban vacancy
declines and the slack capacity that still exists represent an opportunity for an investor looking to generate additional income by taking on the
leasing risks of office assets in suburban submarkets.
Industrial availability registered at 12.8% for year-end 2012. This level is well above the long-term average for availability, which is 10%. Despite
the fact that these figures suggest a fair amount of slack capacity in the industrial markets, average asking rents are actually increasing, having
posted a 3.3% rise over a year earlier. One of the issues at play is the fact that there is a fair amount of functionally obsolete space built into
the overall availability figure. Some types of markets are outperforming on the income side. Key distribution hubs like the Inland Empire, Dallas,
Atlanta and Chicago experienced year-over-year rent growth ranging from 3% to 1%. Meanwhile, metro areas where the industrial market is
focused on the high-tech sector such as San Francisco and San Jose have seen rent growth in excess of 7%. Despite stronger rent growth in these
3

IN THIS ISSUE:
Overview
Office
Multihousing
Retail
Industrial
Hotels Hotel
Appendix
United States | Overview (continued)
Cap Rate Survey
February 2013
>
technology-focused markets, our survey of cap rates shows that stabilized Class A assets in these markets are in the 5.5% range. By contrast, the
distribution hubs noted have cap rates in the 5.25% range.
The retail sector has lagged other property types throughout the recovery period. The leasing side has been weak relative to other sectors, with
year-end availability rates for neighborhood and community centers down a mere 40 bps from the high-water mark set in the middle of 2011.
Still, even though demand is weak, the growth in supply has been weaker with only about a one quarter of one percent of existing stock having
been built in 2012. When looking at the income potential of the sector, the results of our Cap Rate Survey suggest two patterns in investor behavior.
Broadly speaking, the markets with the most inventory have the lowest cap rates. Chicago, Atlanta and Houston have cap rates ranging from 6%
to 6.25% for stabilized Class A neighborhood centers. Investors always place value on the exit liquidity implied by larger markets. Some markets
stand out from this pattern, however, with Gateway markets posting lower cap rates even if they are smaller than other major markets. Boston and
Seattle have stabilized Class A cap rates of 5.9% and 5.6%, respectively, with San Francisco posting a 4.9% cap rate.
Multihousing continues to enjoy the healthiest fundamentals of the main property sectors. Vacancy stood at 5.3% at year-end, down from 5.6%
at the end of 2011. The long-term average vacancy rate for the sector is anywhere between 5% and 6%, and as demand continues to grow, rents
continue to climb as well. Effective market rents are up 4.2% from year-end 2011. Still, rents were up nearly 5% in 2011. Renters can absorb
only so much of a rent increase, and demand for apartment units actually cooled in 2012. Net absorption came in at some 38,000 units in 2012,
versus roughly 41,000 in 2011. Still, despite this slight slowdown in demand, cap rates for the multihousing sector are the lowest across the major
property sectors. For Class A stabilized assets in urban locations, cap rates came in at 3.8% at yearend in San Francisco and at 3.9% in Los
Angeles. Suburban assets in markets like San Jose and Orange County have stabilized Class A cap rates at 4% as well.
In the hotel sector the revenue per available room (RevPAR) continued to grow in 2012. In the full-service segment, RevPAR was up 7.5% from
a year earlier, while the limited-service sector is up 8.4% from 2011. This pace of RevPAR growth has been fairly constant since the economic
recovery started in 2010. With a one-night lease term, the hotel sector was the first to show an improvement. Our Cap Rate Survey shows that
investors are placing the most value on the RevPAR trends from the luxury segments, with an average 7% cap rate across markets. The economy
segments have an average cap rate of 9.6%, though the range is fairly wide, with markets falling anywhere from 8% to 11.5% on the spectrum.
4

IN THIS ISSUE:
Overview
Office
Multihousing
Retail
Industrial
Hotels Hotel
Appendix
Office | Overview
Cap Rate Survey
February 2013
>
Investment volume in the office sector in 2012 was up 19.4% compared to 2011. The total volume came in at $77.6 billion, according to figures
from RCA. To put this figure into perspective, office transaction volume averaged about $76 billion per year from 2003 to 2005. Volume is still
down from the average pace of $176 billion per year recorded in 2006 and 2007, but those figures represented an artificial high. Suburban
submarkets accounted for more than 71% of 2012’s volume. This shift is significant, as this segment has seen sales grow at a slower pace in the
recent past.
While total volume is up and starting to lift suburban office markets, the CBRE Cap Rate Survey provides insight into market expectations on how
these trends will evolve in 2013. CBRE Capital Markets and Valuation professionals expect that across the 38 suburban markets surveyed, cap
rates for Stabilized Class A assets will continue to compress in 2013 in 12 of these markets. By contrast, in the CBD submarkets, it is expected that
only 12 out of 38 will continue to see cap rate compression. With current cap rates at 8.75% for this high-quality product-type in Memphis, our
professionals expect cap rates to increase in the CBD there in the year ahead.
Select from the list below to access the current CBD office cap rates and forecast.
Download a Complete Office CBD Current Cap Rates Chart (PDF)
Download a Complete Office CBD Cap Rate Forecast Chart (PDF)
Select from the list below to access the current suburban office cap rates and forecast.
Download a Complete Office Suburban Current Cap Rates Chart (PDF)
Download a Complete Office Suburban Cap Rate Forecast Chart (PDF)
5

IN THIS ISSUE:
Overview
Office
Multihousing
Retail
Industrial
Hotels Hotel
Appendix
Office CBD | Eastern Region
Atlanta 6.50% - 7.00%
Baltimore 7.50% - 8.00%
* Compared to 1st half 2012
Class A Class B Class C
* Cap Rate Forecast represents the CBRE professional’s opinion of where cap rates are likely to trend in 1st half of 2013 in their local market.
Cap Rate Survey
February 2013
Decrease
Remain Flat
Increase
>
Stabilized Trend* Value-Add Trend* Stabilized Trend* Value-Add Trend* Stabilized Trend* Value-Add Trend*
↓
↓
8.00% - 8.50% ↓ 7.50% - 8.00%
9.00% I 8.75% - 9.25%
Boston 4.75% - 5.25% ↓ 5.50% - 6.00% ↓ 5.50% - 6.00%
Charlotte 6.50% - 7.00%
↓
7.50% - 8.50% I 7.25% - 7.75%
Jacksonville 7.50% - 8.50% I 9.00% - 10.00% I 9.50% - 10.50% ↓ 10.00% - 10.50%
Manhattan 4.00% - 5.00%
↓
5.00% - 6.00% I 5.00% - 6.00%
Memphis 8.50% - 9.00% I 9.00% - 10.00% I 9.00% - 10.00%
Miami 5.50% - 6.25%
Nashville 6.60% - 7.00%
Orlando 5.00% - 7.00%
↓
↓
↓
6.50% - 7.50%
7.50% - 8.00%
↓
↓
6.00% - 6.75%
8.00% - 8.50%
6.00% - 8.00% I 7.00% - 8.50%
Philadelphia 7.00% - 7.75% I 7.50% - 8.25% I 8.50% - 9.00%
Pittsburgh 7.00% - 7.50%
Raleigh 6.50% - 7.50%
↓
↓
8.00% - 8.50%
Tampa 6.50% - 7.50% I 7.50% - 8.50%
I
8.50% - 9.00%
↓
↓
↓
↓
↓
↓
I
I
I
I
I
9.00% - 9.50% ↓ 8.50% - 10.00%
↓
10.00% - 12.00%
10.00% I 11.00% - 12.00% ↓ 12.00% ↓
6.50% - 7.00%
6.50% - 7.00%
8.00% - 8.50%
↓
8.50% - 10.00% ↓ 9.00% - 10.00% I 10.00% - 12.00%
↓
↓
10.50% + I 10.50% +
6.00% - 6.50% I N/A N/A N/A N/A
10.00% - 11.00% ↓ 11.00% - 12.00% ↓ 11.00% - 12.00%
6.75% - 7.75%
8.50% - 9.00%
↓
↓
6.75% - 7.50%
8.75% - 9.50%
↓
↓
7.50% - 8.50%
9.50% - 9.75%
8.00% - 9.00% ↓ 8.50% - 9.50% ↓ 9.50% - 10.00% ↓
9.00% - 9.50% I 9.00% - 9.50%
9.50% - 10.00%
9.50% - 10.50% I 10.50% - 11.00%
8.00% - 8.50% I 8.50% - 9.00% ↓ 9.00% - 9.50% I 9.00% - 10.00%
↓
8.00% - 9.25%
↓
8.75% - 9.75%
↓
9.25% - 10.25%
Washington, DC 4.75% - 5.75% ↓ 5.50% - 6.50% ↓ 6.00% - 7.50% ↓ 6.50% - 7.50% I 7.00% - 8.00%
Atlanta
Baltimore
Boston
Charlotte
CAP RATE FORECAST*
Class A Class B Class C
Stabilized Value-Add Stabilized Value-Add Stabilized Value-Add
Jacksonville
Manhattan N/A N/A
Memphis
Miami
Nashville
Orlando
Pittsburgh
Philadelphia
Raleigh
Tampa
Washington, DC
↓
↓
I
I
I
11.00% - 12.00%
9.50% - 10.50%
9.75% - 10.75%
8.00% - 9.50%
I
↓
↓
I
↓
↓
I
↓
↓
↓
I
I
6

IN THIS ISSUE:
Overview
Office
Multihousing
Retail
Industrial
Hotels Hotel
Appendix
Office CBD | Central Region
Austin 5.75% - 6.00%
Chicago 5.50% - 6.50%
* Compared to 1st half 2012
Class A Class B Class C
* Cap Rate Forecast represents the CBRE professional’s opinion of where cap rates are likely to trend in 1st half of 2013 in their local market.
Decrease
Cap Rate Survey
Remain Flat
Increase
February 2013
>
Stabilized Trend* Value-Add Trend* Stabilized Trend* Value-Add Trend* Stabilized Trend* Value-Add Trend*
↓
I
6.50% - 6.75%
↓
7.00% - 8.00% ↓ 7.00% - 7.50%
7.25% - 7.50% I 7.75% - 8.00%
I
I
8.00% - 9.00% ↓ 8.00% - 9.00%
Cincinnati 8.50% - 9.00% ↓ 9.00% - 9.50% ↓ 10.00% - 10.50% ↓ 10.50% - 11.00% ↓ 11.00% - 11.50%
Columbus 7.00% - 8.0 0%
Dallas 6.50% - 7.50%
↓
↓
8.50% - 9.50% ↓ 8.50% - 10.00%
8.00% - 8.50%
Detroit 9.00% - 10.00% I 10.00% - 12.00%
Houston 5.50% - 6.00%
Indianapolis 7.75% - 8.75%
↓
I
I
I
7.00% - 8.00%
8.25% - 10.25%
↓
↓
I
I
I
8.00% - 9.00%
10.00% - 12.00%
7.00% - 8.00%
↓
↓
I
I
9.00% - 9.25% I 9.25% - 10.00%
I
I
9.00% - 11.00%
11.50% - 12.50%
9.50% - 10.50% ↓ 10.50% - 12.50% ↓ 11.00% - 13.00% ↓
9.00% - 10.00%
9.50% - 12.00%
9.50% - 12.00%
10.00% - 14.00%
9.00% - 10.00%
9.00% - 10.00% ↓ 9.50% - 10.50%
I
I
I
I
I
I
I
I
I
I
12.00% - 14.00% ↓ 14.00% - 16.00% ↓
8.00% - 9.00%
12.00% - 14.00% ↓
9.25% - 10.25%
9.75% - 10.75%
Kansas City 8.25% - 8.75%
9.50% - 10.00% ↓ 9.50% - 10.50%
11.00% - 12.00% ↓ 11.00% - 12.00%
12.00% + ↓
Minneapolis 6.50% - 7.50%
7.50% - 8.50%
9.50%
9.75% - 10.75%
10.00% - 11.50%
12.00% - 13.00% ↓
San Antonio 7.00% - 7.75% ↓ 8.00% - 8.75% ↓ 8.00% - 9.00%
8.50% - 9.50%
10.00% - 11.00%
10.50% - 11.00%
St. Louis 10.50% - 11.00% ↓ 12.00% - 12.50% ↓ 12.00% - 12.50% ↓ 14.00% - 14.50% ↓ 13.00% - 14.00% I 15.00% - 16.00% I
Austin
Chicago
Cincinnati
Columbus
Dallas
Detroit
Houston
Indianapolis
Kansas City
Minneapolis
San Antonio
St. Louis
CAP RATE FORECAST*
Class A Class B Class C
Stabilized Value-Add Stabilized Value-Add Stabilized Value-Add
↓
↓
↓
I
I
↓
I
I
↓
↓
↓
7

IN THIS ISSUE:
Overview
Office
Multihousing
Retail
Industrial
Hotels Hotel
Appendix
Office CBD | Western Region
Albuquerque 7.50% - 8.50%
Denver 5.50% - 6.00%
Las Vegas 7.00% - 8.00%
Los Angeles 5.00% - 5.50%
Orange County 5.75% - 6.25%
Phoenix 6.50% - 7.00%
Portland 6.25% - 7.25%
Sacramento 7.50% - 8.50%
Salt Lake City 7.00% - 8.00%
San Diego 6.25% - 6.75%
San Francisco 3.00% - 4.50%
* Compared to 1st half 2012
Class A Class B Class C
* Cap Rate Forecast represents the CBRE professional’s opinion of where cap rates are likely to trend in 1st half of 2013 in their local market.
Decrease
Cap Rate Survey
Remain Flat
Increase
February 2013
>
Stabilized Trend* Value-Add Trend* Stabilized Trend* Value-Add Trend* Stabilized Trend* Value-Add Trend*
↓
↓
↓
↓
I
↓
I
I
I
I
I
9.00% - 10.00% ↓ 8.50% - 9.25%
7.00% - 7.25% ↓ 6.50% - 7.00%
↓
↓
9.75% - 10.50% ↓ 9.50% - 11.00% ↓ 12.00% - 13.50% ↓
7.75% - 8.00%
8.00% - 8.50%
8.50% - 9.00%
7.00% - 9.50% N/A 8.00% - 9.00% N/A 8.75% - 10.50% N/A 9.00% - 10.00% N/A 9.00% - 11.00% N/A
6.00% - 6.50%
6.75% - 7.50%
7.25% - 7.75%
6.75% - 7.75%
7.75% - 9.00%
7.50% - 8.50%
6.75% - 7.25%
↓
I
↓
↓
I
I
I
6.50% - 7.25%
7.00% - 8.00%
7.50% - 8.00%
7.00% - 8.00%
↓
I
I
I
6.50% - 8.00%
8.25% - 9.00%
↓
↓
I
7.50% - 8.50%
9.00% - 9.75%
8.50% - 10.00% ↓ 8.50% - 9.00%
7.50% - 8.50%
8.50% - 9.50% ↓ 8.75% - 10.00%
7.00% - 8.50%
7.00% - 7.50%
5.50% - 6.00% ↓ 4.00% - 6.00%
↓
I
I
7.50% - 9.50%
7.50% - 8.00%
↓
I
I
I
8.00% - 9.00%
9.00% +
8.00% - 10.00%
8.00% - 8.50%
6.00% - 7.00% ↓ 6.75% - 7.25%
I
↓
I
↓
I
I
I
I
I
8.00% - 10.00%
9.25% - 10.50%
10.00% - 12.00%
8.50% - 10.00%
9.50% +
8.50% - 10.50%
9.00% - 9.50%
7.25% - 8.00%
San Jose 6.50% - 7.50% ↓ 7.00% - 8.00% ↓ 7.00% - 8.00% ↓ 7.50% - 8.50% ↓ 8.00% - 9.00% ↓ 8.50% - 9.50% ↓
Seattle 5.00% - 5.75%
6.00% - 7.00%
5.50% - 6.50%
7.00% - 8.00%
7.50% - 8.50% ↓ 9.00% - 10.00%
Albuquerque
Denver
Las Vegas
Los Angeles
Orange County
Phoenix
Portland
Sacramento
Salt Lake City
San Diego
San Francisco
San Jose
Seattle
↓
I
CAP RATE FORECAST*
Class A Class B Class C
Stabilized Value-Add Stabilized Value-Add Stabilized Value-Add
↓
I
↓
↓
I
↓
I
I
↓
I
I
I
8

IN THIS ISSUE:
Overview
Office
Multihousing
Retail
Industrial
Hotels Hotel
Appendix
Office Suburban | Eastern Region
Atlanta 6.50% - 7.50%
Baltimore 7.00% - 7.25%
Boston 5.75% - 6.25%
Charlotte 7.00% - 7.50%
Jacksonville 7.25% - 8.00%
Memphis 7.75% - 8.25%
Miami 6.00% - 7.00%
Nashville 6.75% - 7.50%
* Compared to 1st half 2012
Class A Class B Class C
* Cap Rate Forecast represents the CBRE professional’s opinion of where cap rates are likely to trend in 1st half of 2013 in their local market.
Decrease
Cap Rate Survey
Remain Flat
Increase
February 2013
>
Stabilized Trend* Value-Add Trend* Stabilized Trend* Value-Add Trend* Stabilized Trend* Value-Add Trend*
↓
↓
↓
I
I
↓
↓
I
7.50% - 8.25%
I
7.50% - 8.75%
I
8.50% - 9.00%
I
9.00% - 10.50%
↓
10.50% - 12.00%
9.00% ↓ 8.50% - 9.25% ↓ 10.00% ↓ 10.00% ↓ 12.00% ↓
6.75% - 7.25%
6.50% - 7.00%
8.00% - 8.50%
7.50% - 8.00%
10.00% - 11.00% ↓
7.50% - 8.00%
7.75% - 8.25%
9.00% - 10.00% ↓ 9.50% - 10.50%
10.50% - 12.50%
8.50% - 9.00%
8.50% - 9.00%
7.00% - 8.00%
7.50% - 7.75%
Orlando 7.50% - 8.50% ↓ 8.00% - 8.50%
Pittsburgh 7.50% - 7.75%
Philadelphia 7.50% - 8.00%
Raleigh 6.50% - 7.50%
Tampa 7.00% - 8.00%
↓
I
I
I
8.00% - 9.00%
8.00% - 8.50%
8.00% - 8.50%
8.00% - 9.00%
↓
↓
↓
↓
↓
↓
I
I
I
I
I
9.00% - 10.00%
8.75% - 9.25%
7.25% - 8.50%
8.25% - 8.75%
↓
↓
↓
↓
↓
I
9.50% - 10.50%
9.00% - 10.00%
8.25% - 9.50%
9.00% - 9.50%
↓
↓
↓
↓
I
10.00% +
↓
↓
↓
10.00% +
9.00% - 10.00% I 11.00% - 12.00%
8.00% - 9.00%
9.50% - 10.50%
↓
↓
9.00% - 11.00%
10.00% - 10.75%
8.50% - 9.50% ↓ 9.00% - 10.00% ↓ 10.00% - 11.00% ↓ 10.00% - 12.00% ↓
8.50% - 9.00%
9.50% - 10.00%
9.00% - 9.50% I 10.00% - 10.50%
8.50% - 9.00%
I
I
9.00% - 10.00%
8.50% - 9.00% ↓ 9.00% - 9.50%
8.00% - 9.00%
I
8.75% - 9.50%
I
I
I
I
I
↓
↓
↓
↓
I
I
11.00% - 12.00% I 12.00% - 13.00% ↓
9.00% - 10.00% I 9.50% - 10.50%
9.25% - 10.25%
I
10.00% - 12.00%
Washington, DC 5.75% - 7.00% ↓ 6.50% - 7.50% ↓ 6.50% - 8.00% ↓ 8.00% - 8.50% ↓ 8.50% - 10.00% ↓ 9.50% - 10.50%
Atlanta
Baltimore
Boston
Charlotte
Jacksonville
Memphis
Miami
Nashville
Orlando
Philadelphia
Pittsburgh
Raleigh
Tampa
Washington, DC
CAP RATE FORECAST*
Class A Class B Class C
Stabilized Value-Add Stabilized Value-Add Stabilized Value-Add
↓
↓
I
9

IN THIS ISSUE:
Overview
Office
Multihousing
Retail
Industrial
Hotels Hotel
Appendix
Office Suburban | Central Region
Austin 6.50% - 6.75%
Chicago 7.25% - 7.75%
Austin
Chicago
Cincinnati
Columbus
Dallas
Detroit
Houston
Indianapolis
Kansas City
Minneapolis
San Antonio
St. Louis
Class A Class B Class C
CAP RATE FORECAST*
Class A Class B Class C
Stabilized Value-Add Stabilized Value-Add Stabilized Value-Add
Cap Rate Survey
February 2013
>
Stabilized Trend* Value-Add Trend* Stabilized Trend* Value-Add Trend* Stabilized Trend* Value-Add Trend*
↓
↓
7.00% - 7.25%
↓
7.75% - 8.00%
9.00% - 10.00% ↓ 8.00% - 9.50%
Cincinnati 8.00% - 8.50% I 8.50% - 9.00% I 9.00% - 9.50%
Columbus 7.50% - 8.00%
Dallas 6.50% - 8.00% I 7.00% - 8.00%
↓
8.50% - 9.50% ↓ 8.50% - 10.00%
↓
7.50% - 9.00%
Detroit 8.75% - 10.00% I 10.00% - 12.00% I 9.50% - 12.00%
Houston 6.00% - 6.50%
Indianapolis 8.00% - 9.00%
Kansas City 7.25% - 7.75%
↓
↓
↓
7.50% - 8.00% I 7.50% - 8.50%
8.50% - 9.50%
↓
8.50% - 9.50%
9.00% - 10.00% I 8.50% - 9.50%
Minneapolis 6.50% - 8.25% I 8.00% - 9.00% I 8.75% - 9.75%
San Antonio 6.75% - 7.50%
St. Louis 8.25% - 8.75% ↓ 8.50% - 9.50%
* Compared to 1st half 2012
↓
7.75% - 8.50% I 8.00% - 9.00%
↓
9.25% - 9.75%
↓
↓
↓
↓
↓
I
↓
↓
I
↓
↓
I
8.25% - 8.50%
I
9.25% - 9.50%
↓
9.75% - 10.00%
10.00% - 11.00% ↓ 11.25% - 13.25% ↓ 14.00% - 15.00% ↓
9.50% - 10.50%
10.50% - 11.50%
11.00% - 12.50% I
I
9.50% - 10.50% ↓ 10.50% - 12.50%
11.00% - 13.00% ↓
8.00% - 9.00%
8.75% - 10.00%
10.00% - 12.00% ↓
10.00% - 14.00%
10.00% - 14.00% ↓ 12.00% - 15.00% I
↓
I
9.00% - 10.00% ↓ 8.50% - 10.00%
9.00% - 10.00%
* Cap Rate Forecast represents the CBRE professional’s opinion of where cap rates are likely to trend in 1st half of 2013 in their local market.
↓
9.00% - 10.00%
↓
I
I
↓
↓
↓
12.00% - 14.00% ↓
9.50% - 10.50%
10.00% - 11.00% ↓ 10.00% - 11.00% I 12.00% + ↓
9.75% - 10.75%
10.00% - 12.00% ↓ 12.00% - 13.00% ↓
8.50% - 9.50%
10.00% - 11.00%
10.50% - 11.50%
9.75% - 10.50%
10.00% - 12.00%
12.00% - 15.00% I
↓
↓
I
↓
↓
Decrease
Remain Flat
Increase
↓
↓
10

IN THIS ISSUE:
Overview
Office
Multihousing
Retail
Industrial
Hotels Hotel
Appendix
Office Suburban | Western Region
* Compared to 1st half 2012
Class A Class B Class C
* Cap Rate Forecast represents the CBRE professional’s opinion of where cap rates are likely to trend in 1st half of 2013 in their local market.
Decrease
Cap Rate Survey
Remain Flat
Increase
February 2013
>
Stabilized Trend* Value-Add Trend* Stabilized Trend* Value-Add Trend* Stabilized Trend* Value-Add Trend*
Albuquerque 8.00% - 8.50% I 9.00% - 10.00% ↓ 8.50% - 9.25% I 10.50% - 11.50% ↓ 9.50% - 11.00% ↓ 12.00% - 14.00% ↓
Denver 6.50% - 7.00%
7.50% - 8.00% I 7.50% - 8.00%
8.00% - 8.50%
9.50% - 10.00% ↓ 10.00% - 11.00%
Las Vegas 7.00% - 8.00%
Los Angeles 5.00% - 5.50%
Orange County 5.75% - 6.25%
↓
↓
↓
I
7.00% - 9.50% I 8.00% - 9.00% I 8.75% - 10.50%
6.00% - 6.50%
6.75% - 7.50%
↓
↓
6.50% - 7.25%
7.00% - 8.00%
↓
↓
↓
6.50% - 8.00%
8.25% - 9.00%
Phoenix 6.50% - 7.25% I 7.50% - 8.25% I 7.50% - 8.25% I 8.50% - 9.25%
Portland 7.25% - 8.25%
Sacramento 7.50% - 8.50%
Salt Lake City 7.00% - 8.00%
San Diego 5.75% - 6.25%
↓
↓
↓
I
7.75% - 8.75% I 8.00% - 9.00% I 8.50% - 9.50%
7.75% - 9.00%
7.50% - 8.50%
6.25% - 6.75%
↓
↓
↓
8.50% - 9.50%
7.00% - 8.50%
7.00% - 7.50%
↓
↓
I
8.75% - 10.00%
7.50% - 9.50%
7.50% - 8.00%
San Francisco 6.00% - 7.00% ↓ 6.50% - 7.50% ↓ 6.75% - 7.50% ↓ 7.00% - 7.50%
↓
↓
↓
I
↓
I
I
I
I
I
9.00% - 10.00% ↓ 9.00% - 11.00%
7.50% - 8.50%
9.00% - 9.75%
↓
↓
8.00% - 10.00%
9.25% - 10.50%
10.00% - 11.00% ↓ 11.00% - 13.00% ↓
8.75% - 9.75% I 9.50% - 10.75%
↓
↓
↓
I
I
9.50% - 11.00% ↓ 12.00% - 14.00% ↓
8.00% - 10.00% I 9.00% - 11.00%
I
8.00% - 8.50% ↓ 8.50% - 9.00% ↓
7.00% - 8.00% ↓ 7.50% - 8.25%
San Jose 7.00% - 8.00% ↓ 7.50% - 8.50% ↓ 7.50% - 8.00% ↓ 8.00% - 8.50% ↓ 8.00% - 9.00% I 8.25% - 9.50%
Seattle 6.00% - 6.50% ↓ 6.00% - 8.00%
Albuquerque
Denver
Las Vegas
Los Angeles
Orange County
Phoenix
Portland
Sacramento
Salt Lake City
San Diego
San Francisco
San Jose
Seattle
I
CAP RATE FORECAST*
6.50% - 7.50% I 7.00% - 8.00%
Class A Class B Class C
Stabilized Value-Add Stabilized Value-Add Stabilized Value-Add
I
7.50% - 9.00% I 9.00% - 10.00%
I
I
I
11

IN THIS ISSUE:
Overview
Office
Multihousing
Retail
Industrial
Hotels Hotel
Appendix
Multihousing | Overview
Cap Rate Survey
February 2013
>
Among all sectors of commercial real estate investment, multihousing saw the earliest turnaround of investor interest, as the positive trends in
income fundamentals seen over the last two years had been widely expected. The stabilizing influence of the debt provided by the governmentsponsored
enterprises (Freddie Mac and Fannie Mae) was an enormous help for market liquidity as well. Total multihousing transaction volume
in 2012 came in at $84.6 billion, according to RCA. This figure is still off from the high-water mark of $105.6 billion set in 2007, but when
one thinks about the recent pace of growth, it is not quite so far off from the peak. The dollar value increase in volume from 2011 to 2012 was
$27 billion. 2013 would only need to see an increase of $21 billion in volume to hit the 2007 record.
CBRE Capital Markets and Valuation professionals expect that, for the 42 markets surveyed, cap rates for Class A stabilized assets for only
eight will continue to compress in 2013. With the exception of Washington, DC, the markets where further compression is expected are
secondary and tertiary markets. That said, CBRE does not expect further compression in all secondary and tertiary markets. With Class A
stabilized assets in suburban submarkets, the expectations for further compression are even smaller. Only 7 out of the 42 markets surveyed are
expected to experience further compression in cap rates for these types of assets.
Select from the list below to access the current multihousing infill/urban cap rates and forecast.
Download a Complete Multihousing Infill/Urban Current Cap Rates Chart (PDF)
Download a Complete Multihousing Infill/Urban Cap Rate Forecast Chart (PDF)
Select from the list below to access the current multihousing suburban cap rates and forecast.
Download a Complete Multihousing Suburban Current Cap Rates Chart (PDF)
Download a Complete Multihousing Suburban Cap Rate Forecast Chart (PDF)
12

IN THIS ISSUE:
Overview
Office
Multihousing
Retail
Industrial
Hotels Hotel
Appendix
Multihousing Infill/Urban | Eastern Region
Class A Class B Class C
Stabilized Value-Add Stabilized Value-Add Stabilized Value-Add
Atlanta 4.75% - 5.25% 5.25% - 5.75% 5.25% - 5.75% 6.00% - 6.50% 7.00% - 7.50% 8.00% - 8.50%
Baltimore 4.25% - 4.75% 4.50% - 5.00% 5.50% - 6.00% 5.75% - 6.50% 6.50% - 7.00% 7.25% - 7.75%
Boston 4.00% - 4.50% 4.00% - 4.75% 4.75% - 5.25% 4.75% - 5.25% N/A N/A
Charlotte 4.50% - 5.00% 5.25% - 5.75% 5.50% - 6.00% 6.00% - 6.50% 7.00% - 7.50% 7.50% +
Jacksonville 5.20% - 5.40% 5.75% - 6.25% 6.00% - 6.30% 6.75% - 7.00% 6.75% - 7.25% 9.00% - 9.50%
Manhattan 3.50% - 4.50% 4.00% - 5.00% 4.00% - 5.00% 4.50% - 5.50% 5.25% - 6.25% 5.50% - 6.50%
Memphis 5.75% - 6.25% 5.75% - 6.25% 6.50% - 7.50% 6.50% - 7.50% 8.00%+ 8.00%+
Miami 4.00% - 4.50% 4.75% - 5.00% 5.00% - 5.25% 5.25% - 5.50% 6.00% - 6.50% 6.25% - 7.00%
Nashville 5.00% - 5.50% 5.75% - 6.25% 6.00% - 6.50% 6.50% - 7.00% 6.75% - 7.25% 7.25% - 7.75%
Orlando 4.75% - 5.25% 5.25% - 5.75% 5.75% - 6.25% 6.00% - 6.50% 6.50% - 7.00% 7.00% - 8.25%
Philadelphia 5.00% - 5.50% 5.00% - 5.50% 6.00% - 6.50% 6.25% - 6.75% 7.00% - 7.50% 7.50% - 8.00%
Pittsburgh 6.00% - 6.50% 6.50% - 7.00% 6.50% - 7.00% 7.00% - 7.50% 8.00% - 8.50% 8.50% - 9.00%
Raleigh 4.50% - 5.75% 5.75% - 6.50% 5.50% - 6.50% 6.50% - 7.50% 7.50% - 9.50% 9.50% - 10.50%
Tampa 5.00% - 5.50% N/A 5.75% - 6.25% 6.00% - 6.50% 6.25% - 6.75% 6.75% - 7.25%
Washington, DC 4.00% - 4.40% 4.25% - 4.75% 5.25% - 5.75% 5.75% - 6.50% 6.50% - 7.00% 7.25% - 7.75%
Atlanta
CAPE RATE FORECAST*
Class A Class B Class C
Stabilized Value-Add Stabilized Value-Add Stabilized Value-Add
Baltimore N/A
Boston
Charlotte
Jacksonville
Manhattan
Memphis
Miami
Nashville
Orlando
Philadelphia
Pittsburgh
Raleigh
Tampa
Washington, DC N/A
* Cap Rate Forecast represents the CBRE professional’s opinion of where cap rates are likely to trend in 1st half of 2013 in their local market.
Decrease
Cap Rate Survey
Remain Flat
Increase
February 2013
>
13

IN THIS ISSUE:
Overview
Office
Multihousing
Retail
Industrial
Hotels Hotel
Appendix
Multihousing Infill/Urban | Central Region
Class A Class B Class C
Stabilized Value-Add Stabilized Value-Add Stabilized Value-Add
Austin 4.50% - 5.00% 4.50% - 5.00% 5.25% - 5.75% 5.25% - 5.75% 6.00% - 6.50% 6.00% - 6.50%
Chicago 4.50% - 5.00% 4.75% - 5.25% 5.00% - 5.25% 5.25% - 5.75% 5.75% - 6.25% 6.25% - 7.00%
Cincinnati 5.50% - 6.00% 6.25% - 6.75% 6.50% - 7.00% 7.25% - 7.75% 8.00% - 8.50% 9.00% - 9.50%
Cleveland 7.50% - 8.00% N/A 8.00% - 8.50% 8.25% - 8.75% 8.50% - 9.00% 10.00% - 10.50%
Columbus 6.00% - 6.50% 6.25% - 6.75% 7.00% - 7.50% 7.50% - 8.00% 8.25% - 8.75% 8.75% - 9.00%
Dallas 4.25% - 5.25% 5.75% - 6.25% 6.25% - 6.75% 6.50% - 7.25% 7.25% - 7.75% 7.75% - 8.25%
Detroit 6.75% - 7.50% 7.50% - 8.50% 7.50% - 8.25% 8.00% - 9.00% 8.75% - 9.50% 9.50% - 11.00%
Houston 4.50% - 5.00% 5.50% - 6.00% 6.00% - 6.50% 6.25% - 6.75% 7.00% - 7.50% 7.75% - 8.25%
Indianapolis 5.50% - 6.00% 5.75% - 6.25% 6.00% - 6.50% 6.50% - 7.00% 7.50% - 8.00% 8.00% - 8.50%
Kansas City 5.25% - 5.75% N/A N/A N/A N/A N/A
Minneapolis 5.25% - 5.50% 5.50% - 5.75% 6.00% - 6.25% 6.50% - 6.75% 7.25% - 7.75% 8.00% - 8.50%
Oklahoma City 6.00% - 6.50% N/A 6.50% - 7.00% 6.75% - 7.25% 9.00% - 9.50% 9.50% - 10.00%
San Antonio 5.25% - 5.75% N/A 6.25% - 6.75% 6.50% - 7.00% 7.00% - 7.50% 7.50% - 8.00%
St. Louis 5.50% - 6.00% 5.75% - 6.25% 6.10% - 6.75% 6.50% - 6.90% 8.00% - 9.50% 8.25% - 9.50%
Austin
Chicago
Cincinnati
Cleveland
Columbus
Dallas
Detroit
Houston
Indianapolis
Kansas City
Oklahoma City
Minneapolis
CAP RATE FORECAST*
Class A Class B Class C
Stabilized Value-Add Stabilized Value-Add Stabilized Value-Add
San Antonio N/A
St. Louis
* Cap Rate Forecast represents the CBRE professional’s opinion of where cap rates are likely to trend in 1st half of 2013 in their local market.
Decrease
Cap Rate Survey
Remain Flat
Increase
February 2013
>
14

IN THIS ISSUE:
Overview
Office
Multihousing
Retail
Industrial
Hotels Hotel
Appendix
Multihousing Infill/Urban | Western Region
Albuquerque
Denver
Inland Empire
Los Angeles
Orange County
Phoenix
Portland
Sacramento
Salt Lake City
San Diego
San Francisco
San Jose
Seattle
Class A Class B Class C
Stabilized Value-Add Stabilized Value-Add Stabilized Value-Add
Albuquerque 5.75% - 6.25% 6.00% - 6.50% 6.25% - 6.75% 6.50% - 7.00% 7.00% - 7.50% 7.50% - 8.00%
Denver 4.75% - 5.25% 5.50% - 5.75% 5.25% - 5.75% 5.50% - 6.00% 6.50% - 7.00% 6.75% - 7.25%
Inland Empire 4.75% - 5.25% 5.00% - 5.50% 5.00% - 5.50% 5.25% - 5.75% 6.00% + 6.00% +
Los Angeles 3.75% - 4.00% 4.50% - 4.75% 4.00% - 4.50% 4.75% - 5.25% 5.00% - 5.50% 5.50% - 6.00%
Orange County 3.75% - 4.25% 4.00% - 4.50% 4.50% - 4.75% 5.00% - 5.50% 5.50% - 6.00% 6.00% - 6.50%
Phoenix 4.75% - 5.00% 5.25% 5.25% - 5.75% 5.25% - 5.75% 6.00% - 6.50% 6.00% - 6.50%
Portland 4.75% - 5.00% 5.00% - 5.25% 5.25% - 5.75% 5.25% - 5.75% 5.75% - 6.25% 6.00% - 6.50%
Sacramento 5.00% - 5.50% 5.50% - 6.00% 5.25% - 5.75% 5.50% - 6.00% 6.00% - 6.50% 6.50% - 7.00%
Salt Lake City 5.25% - 5.75% 5.50% - 6.00% 5.75% - 6.00% 6.00% - 6.50% 6.00% - 6.25% 6.50% - 7.00%
San Diego 3.75% - 4.25% 4.25% - 4.75% 4.50% - 5.00% 5.00% - 5.50% 5.50% - 6.00% 5.50% - 6.00%
San Francisco 3.50% - 4.00% 4.00% - 4.25% 4.75% - 5.25% 5.25% - 5.75% 5.50% - 6.00% 6.00% - 6.50%
San Jose 3.75% - 4.25% 4.00% - 4.50% 5.00% - 5.50% 5.75% - 6.25% 5.50% - 6.00% 6.00% - 6.50%
Seattle 3.75% - 4.25% 4.50% - 5.00% 5.00% - 5.50% 5.50% - 6.00% 5.50% - 6.00% 6.25% - 7.25%
CAP RATE FORECAST*
Class A Class B Class C
Stabilized Value-Add Stabilized Value-Add Stabilized Value-Add
* Cap Rate Forecast represents the CBRE professional’s opinion of where cap rates are likely to trend in 1st half of 2013 in their local market.
Decrease
Cap Rate Survey
Remain Flat
Increase
February 2013
>
15

IN THIS ISSUE:
Overview
Office
Multihousing
Retail
Industrial
Hotels Hotel
Appendix
Multihousing Suburban | Eastern Region
Class A Class B Class C
Stabilized Value-Add Stabilized Value-Add Stabilized Value-Add
Atlanta 5.25% - 5.75% 5.50% - 6.00% 5.75% - 6.25% 6.25% - 6.75% 7.25% - 7.75% 8.25% - 8.75%
Baltimore 4.50% - 5.00% 4.75% - 5.25% 5.75% - 6.25% 6.00% - 6.50% 6.50% - 7.00% 7.25% - 7.75%
Boston 4.25% - 5.25% 4.50% - 5.25% 5.25% - 5.50% 4.75% - 5.50% 6.50% - 6.75% 6.50% - 7.00%
Charlotte 5.00% - 5.50% 5.50% - 6.00% 5.50% - 6.00% 6.00% - 6.50% 7.00% - 7.50% 7.50% - 8.00%
Jacksonville 5.25% - 5.65% 6.00% - 6.50% 6.00% - 6.30% 7.00% - 7.25% 7.00% - 7.50% 9.25% - 9.75%
Memphis 5.75% - 6.50% 5.75% - 6.75% 6.75% - 7.75% 6.75% - 7.75% 9.00% + 9.00% +
Miami 4.50% - 4.75% 5.00% - 5.25% 5.00% - 5.50% 5.50% - 6.00% 6.25% - 6.75% 6.50% - 7.00%
Nashville 5.50% - 6.00% 5.75% - 6.25% 6.00% - 6.50% 6.50% - 7.00% 7.00% - 7.50% 7.50% - 8.00%
Orlando 5.00% - 5.75% 6.00% - 6.75% 5.75% - 6.50% 6.75% - 7.25% 6.50% - 7.50% 7.25% - 8.25%
Philadelphia 5.00% - 5.50% 5.00% - 5.50% 6.00% - 6.50% 6.25% - 6.75% 7.00% - 7.50% 7.50% - 8.00%
Pittsburgh 6.00% - 6.50% 6.50% - 7.00% 6.50% - 7.00% 7.00% - 7.50% 8.00% - 8.50% 8.50% - 9.00%
Raleigh 4.75% - 6.00% 6.00% - 6.50% 5.75% - 6.75% 6.75% - 7.50% 7.75% - 9.75% 9.75% - 10.50%
Tampa 5.25% - 5.75% 5.50% - 6.0% 5.75% - 6.25% 6.00% - 6.5% 6.25% - 6.75% 6.75% - 7.25%
Washington, DC 4.25% - 4.75% 4.50% - 5.00% 5.50% - 6.00% 6.00% - 6.50% 6.50% - 7.00% 7.25% - 7.75%
Atlanta
CAP RATE FORECAST*
Class A Class B Class C
Stabilized Value-Add Stabilized Value-Add Stabilized Value-Add
Baltimore N/A
Boston
Charlotte
Jacksonville
Memphis
Miami
Nashville
Orlando
Philadelphia
Pittsburgh
Raleigh
Tampa
Washington, DC N/A
* Cap Rate Forecast represents the CBRE professional’s opinion of where cap rates are likely to trend in 1st half of 2013 in their local market.
Decrease
Cap Rate Survey
Remain Flat
Increase
February 2013
>
16

IN THIS ISSUE:
Overview
Office
Multihousing
Retail
Industrial
Hotels Hotel
Appendix
Multihousing Suburban | Central Region
Class A Class B Class C
Stabilized Value-Add Stabilized Value-Add Stabilized Value-Add
Austin 5.00% - 5.50% 5.00% - 5.50% 5.75% - 6.25% 5.75% - 6.25% 6.50% - 7.00% 6.50% - 7.00%
Chicago 5.00% - 5.50% 5.25% - 5.75% 5.75% - 6.25% 6.00% - 6.50% 7.00% - 7.50% 7.25% - 7.75%
Cincinnati 6.00% - 6.50% 6.50% - 7.00% 7.00% - 7.50% 7.50% - 8.00% 8.00% - 8.50% 9.00% - 9.50%
Cleveland 6.50% - 7.00% N/A 8.00% - 8.50% 8.25% - 8.75% 8.50% - 9.00% 9.00% - 9.50%
Columbus 6.00% - 6.50% 6.25% - 6.75% 7.25% - 7.75% 7.50% - 8.00% 8.75% - 9.25% 9.50% - 10.00%
Dallas 5.75% - 6.25% 6.00% - 6.50% 6.25% - 6.75% 6.50% - 7.25% 7.25% - 7.75% 7.75% - 8.25%
Detroit 6.75% - 7.50% 7.50% - 8.50% 7.50% - 8.25% 8.00% - 9.00% 8.75% - 9.50% 9.50% - 11.00%
Houston 5.75% - 6.25% 6.25% - 6.75% 6.75% - 7.25% 7.25% - 7.75% 7.75% - 8.25% 8.25% - 8.75%
Indianapolis 5.75% - 6.25% 6.00% - 6.50% 6.25% - 6.75% 6.75% - 7.25% 7.75% - 8.25% 8.25% - 8.75%
Kansas City 6.00% - 6.25% 6.00% - 6.50% 7.00% - 7.25% 7.50% - 7.75% 8.50% - 9.00% 9.50% - 10.00%
Minneapolis 5.50% - 5.75% 5.75% - 6.00% 6.25% - 6.50% 6.75% - 7.00% 8.00% - 8.50% 8.75% - 9.25%
Oklahoma City 6.25% - 6.75% 6.50% - 6.75% 6.75% - 7.25% 6.85% - 7.35% 9.00% - 9.50% 9.50% - 10.00%
San Antonio 5.50% - 6.00% N/A 6.50% - 7.00% 6.75% - 7.25% 7.00% - 7.50% 7.50% - 8.00%
St. Louis 5.50% - 6.00% 5.75% - 6.25% 6.10% - 6.75% 6.50% - 6.90% 8.00% - 9.50% 8.25% - 9.50%
Austin
Chicago
Cincinnati
Cleveland
Columbus
Dallas
Detroit
Houston
Indianapolis
Kansas City
Oklahoma City
Minneapolis
CAP RATE FORECAST*
Class A Class B Class C
Stabilized Value-Add Stabilized Value-Add Stabilized Value-Add
San Antonio N/A
St. Louis
* Cap Rate Forecast represents the CBRE professional’s opinion of where cap rates are likely to trend in 1st half of 2013 in their local market.
Decrease
Cap Rate Survey
Remain Flat
Increase
February 2013
>
17

IN THIS ISSUE:
Overview
Office
Multihousing
Retail
Industrial
Hotels Hotel
Appendix
Multihousing Suburban | Western Region
Albuquerque
Denver
Inland Empire
Las Vegas
Los Angeles
Orange County
Phoenix
Portland
Sacramento
Salt Lake City
San Diego
San Francisco
San Jose
Seattle
Class A Class B Class C
Stabilized Value-Add Stabilized Value-Add Stabilized Value-Add
Albuquerque 5.75% - 6.50% 6.00% - 6.50% 6.00% - 7.50% 6.75% - 7.25% 7.00% - 7.75% 7.75% - 8.25%
Denver 5.25% - 5.75% 5.50% - 6.00% 5.60% - 6.10% 5.75% - 6.25% 6.75% - 7.25% 7.00% - 7.75%
Inland Empire 5.00% - 5.50% 5.25% - 5.75% 5.25% - 5.75% 5.50% - 6.00% 6.00% + 6.00% +
Las Vegas 5.25% - 5.75% 5.25% - 5.75% 6.00% - 6.50% 6.00% - 6.50% 7.00% - 7.50% 7.00% - 7.50%
Los Angeles 4.00% - 4.50% 4.75% - 5.00% 4.50% - 4.25% 5.25% - 5.75% 5.25% - 5.75% 6.00% - 6.50%
Orange County 3.75% - 4.25% 4.00% - 4.50% 4.50% - 4.75% 5.00% - 5.50% 5.50% - 6.00% 6.00% - 6.50%
Phoenix 5.00% - 5.50% 5.00% - 5.50% 5.00% - 5.50% 5.00% - 5.50% 6.00% - 6.50% 6.00% - 6.50%
Portland 5.00% - 5.25% 5.00% - 5.25% 5.25% - 5.75% 5.25% - 5.75% 6.00% - 6.50% 6.00% - 6.50%
Sacramento 5.25% - 5.75% 5.50% - 6.00% 5.75% - 6.25% 6.00% - 6.50% 6.75% - 7.25% 7.25% - 7.75%
Salt Lake City 5.25% - 5.75% 5.50% - 6.00% 5.75% - 6.00% 6.00% - 6.50% 6.00% - 6.25% 6.50% - 7.00%
San Diego 4.00% - 4.50% 4.50% - 5.00% 5.00% - 5.50% 5.50% - 6.00% 5.50% - 6.00% 6.00% - 7.00%
San Francisco 4.00% - 4.50% 4.25% - 4.75% 5.00% - 5.50% 5.00% - 5.50% 5.75% - 6.25% 5.75% - 6.25%
San Jose 3.75% - 4.25% 4.00% - 4.50% 5.00% - 5.25% 5.75% - 6.25% 5.50% - 6.00% 5.50% - 6.00%
Seattle 4.00% - 4.50% 4.50% - 5.00% 5.25% - 5.75% 5.50% - 6.25% 5.75% - 6.25% 6.75% - 7.25%
CAP RATE FORECAST*
Class A Class B Class C
Stabilized Value-Add Stabilized Value-Add Stabilized Value-Add
* Cap Rate Forecast represents the CBRE professional’s opinion of where cap rates are likely to trend in 1st half of 2013 in their local market.
Decrease
Cap Rate Survey
Remain Flat
Increase
February 2013
>
18

IN THIS ISSUE:
Overview
Office
Multihousing
Retail
Industrial
Hotels Hotel
Appendix
Retail | Overview
Cap Rate Survey
February 2013
>
The retail sector continues to see increases in sales volume despite lagging other property sectors into the early stages of the recovery. In 2012,
sales volume reached $52.8 billion, up from the $44.1 billion pace set in 2011. This 19.7% increase for retail overall masks divergent trends
among retail sub-types. Sales volume for strip-center retail was down in 2012, falling to $20.7 billion from the $25.6 billion recorded in 2011.
The mall segment, though, saw tremendous growth, jumping from $18.5 billion in sales volume in 2011 to $32.1 billion in 2012. This shift
reflects a bit of a change in investor perception of risk. For much of the recovery, investors who were interested in retail were only pursuing
safe, stable, grocery-anchored centers. Investors regarded anything tied to the discretionary spending patterns of consumers with some caution,
and thus, investment in the mall segment fell to a low of $8 billion in 2009.
Evidence from our survey suggests that there is further room for cap rate compression in the year ahead. For Class A stabilized neighborhood
center assets, our professionals expect further compression in 18 of the 40 markets surveyed, and, for Class A stabilized power center assets,
19 of the markets surveyed. With average Class A stabilized cap rates of 6.4% and 6.9% for neighborhood and power centers, respectively,
and debt costs somewhere in the 4%-to-5% range according to the results of the quarterly CBRE Lender Forum report, there is some room for
further compression. There is still some untapped opportunity here, given that investors were hesitant about the sector for so many years.
Select from the list below to access the current neighborhood/community center (grocery anchored) retail cap rates and forecast.
Download a Complete Retail Neighborhood/Community Center (Grocery Anchored) Current Cap Rates Chart (PDF)
Download a Complete Retail Neighborhood/Community Center (Grocery Anchored) Cap Rate Forecast Chart (PDF)
Select from the list below to access the current power center retail cap rates and forecast.
Download a Complete Retail Power Center Current Cap Rates Chart (PDF)
Download a Complete Retail Power Center Cap Rate Forecast Chart (PDF)
Select below to access the current high street retail cap rates and forecast.
Download a Complete High Street Retail Current Cap Rates and Forecast Chart (PDF)
19

IN THIS ISSUE:
Overview
Office
Multihousing
Retail
Industrial
Hotels Hotel
Appendix
Retail Neighborhood/Community Center (Grocery Anchored) | Eastern Region
Atlanta 5.20% - 7.00%
Class A Class B Class C
Stabilized Trend* Stabilized Trend* Stabilized Trend*
↓
7.00% - 8.25%
Baltimore 5.50% - 6.50% I 6.00% - 7.50%
Decrease
Remain Flat
Increase
* Cap Rate Forecast represents the CBRE professional’s opinion of where cap rates are likely to trend in 1st half of 2013 in their local market.
↓
↓
8.25% - 9.50%
7.00% - 9.50%
Boston 5.50% - 6.25% I 7.00% - 7.50% I 8.00% - 9.00%
Charlotte 6.75% - 7.25% I 7.75% - 8.75% ↓ 8.50% - 9.50%
Jacksonville 6.50% - 7.00% I 7.25% - 7.75% I 8.00% - 11.00% I
Memphis 7.75% - 8.25% I 8.50% - 9.00% I 10.00% - 11.00% I
Miami 5.50% - 6.25% I 6.50% - 7.25% I 8.00% - 9.00% I
Nashville 7.00% - 7.50% I 8.00% - 8.50%
9.00% - 9.50%
Orlando 6.50% - 7.00% I 7.25% - 7.75% I 8.00% - 11.00% I
Philadelphia 7.00% - 7.25% I 8.00% - 8.50% I 9.00% - 10.50% I
Pittsburgh 6.50% - 7.25%
8.25% - 9.25% I 9.50% - 10.50% I
Raleigh 6.00% - 7.25% ↓ 7.00% - 8.75% ↓ 8.00% - 9.50%
Tampa 6.50% - 7.00%
↓
↓
7.25% - 7.75%
Washington, DC 5.50% - 6.50% I 6.00% - 7.50%
* Compared to 1st half 2012
Atlanta
Baltimore
Boston
Charlotte
Jacksonville
Memphis
Miami
Nashville
Orlando
Philadelphia
Pittsburgh
Raleigh
Tampa
Washington, DC
CAP RATE FORECAST*
↓
↓
↓
8.00% - 11.00%
7.00% - 9.50%
Class A Class B Class C
Stabilized Stabilized Stabilized
↓
↓
↓
↓
↓
↓
↓
↓
Cap Rate Survey
February 2013
>
20

IN THIS ISSUE:
Overview
Office
Multihousing
Retail
Industrial
Hotels Hotel
Appendix
Retail Neighborhood/Community Center (Grocery Anchored) | Central Region
Austin
Chicago
Cincinnati
Cleveland
Columbus
Dallas
Detroit
Houston
Indianapolis
Kansas City
Minneapolis
San Antonio
St. Louis
Class A Class B Class C
Stabilized Trend* Stabilized Trend* Stabilized Trend*
Austin 6.00% - 6.25% I 7.00% - 7.25%
9.50% - 9.75% ↓
Chicago 5.75% - 6.25%
7.50% - 8.00% I 9.00% - 10.50% ↓
Cincinnati 7.50% - 8.25% ↓ 8.50% - 9.00%
9.00% - 10.00%
Cleveland 7.00% - 7.50%
Columbus 6.50% - 7.00%
↓
↓
↓
CAP RATE FORECAST*
Class A Class B Class C
Stabilized Stabilized Stabilized
Decrease
Remain Flat
Increase
* Cap Rate Forecast represents the CBRE professional’s opinion of where cap rates are likely to trend in 1st half of 2013 in their local market.
↓
↓
8.25% - 8.75% I 10.00% - 12.00% ↓
7.75% - 8.25%
9.50% - 10.50%
Dallas 5.75% - 6.75% I 7.25% - 8.00% I 8.50% - 9.75%
Detroit 7.00% - 7.50%
↓
8.25% - 8.75%
↓
↓
10.00% - 12.00%
Houston 5.50% - 7.00% I 7.00% - 8.75% I 9.00% - 12.00% ↓
Indianapolis 6.50% - 7.00%
7.75% - 8.25%
9.50% - 10.50% ↓
Kansas City 6.50% - 7.00%
7.75% - 8.25%
9.50% - 10.50% I
Minneapolis 5.75% - 6.25%
7.50% - 8.00% ↓ 9.00% - 10.50% ↓
San Antonio 6.00% - 7.25% I 7.50% - 8.75% I 9.00% - 12.00% ↓
St. Louis 6.50% - 7.00%
7.75% - 8.25%
9.50% - 10.50% I
* Compared to 1st half 2012
↓
↓
↓
↓
↓
↓
↓
↓
↓
↓
↓
Cap Rate Survey
February 2013
>
21

IN THIS ISSUE:
Overview
Office
Multihousing
Retail
Industrial
Hotels Hotel
Appendix
Retail Neighborhood/Community Center (Grocery Anchored) | Western Region
Albuquerque 7.50% - 8.50%
Class A Class B Class C
Stabilized Trend* Stabilized Trend* Stabilized Trend*
↓
8.00% - 9.00%
Decrease
Remain Flat
Increase
* Cap Rate Forecast represents the CBRE professional’s opinion of where cap rates are likely to trend in 1st half of 2013 in their local market.
↓
9.00% - 10.00%
Denver 6.50% - 7.00% ↓ 7.50% - 8.00% ↓ 9.00% - 9.50% ↓
Las Vegas 6.50% - 7.50% I 7.00% - 8.00%
7.50% - 10.00%
Los Angeles 5.25% - 5.75%
6.25% - 6.75% I 8.00% - 8.75% ↓
Orange County 5.25% - 5.75% I 6.25% - 6.75% I 8.00% - 8.75% ↓
Phoenix 5.75% - 6.25%
6.50% - 7.00% I 8.00% - 9.00% I
Portland 5.50% - 6.25%
6.75% - 7.75%
8.00% - 10.00% ↓
Sacramento 7.00% - 8.00%
8.00% - 9.00%
9.00% + I
Salt Lake City 7.50% - 8.20% ↓ 8.20% - 8.60% I 9.00% - 10.00% ↓
San Diego 5.25% - 5.75% I 6.25% - 6.75% I 8.00% - 8.75% ↓
San Francisco 4.50% - 5.25%
6.00% - 6.75%
7.25% - 7.75%
↓
↓
↓
↓
↓
San Jose 6.00% - 6.75% I 7.00% - 7.75% I 7.75% - 9.00%
Seattle 5.50% - 5.75%
* Compared to 1st half 2012
Albuquerque
Denver
Las Vegas
Los Angeles
Orange County
Phoenix
Portland
Sacramento
Salt Lake City
San Diego
San Francisco
San Jose
Seattle
↓
↓
↓
↓
↓
6.50% - 7.50% ↓ 7.50% - 9.50% I
CAP RATE FORECAST*
Class A Class B Class C
Stabilized Stabilized Stabilized
↓
↓
↓
↓
Cap Rate Survey
February 2013
>
22

IN THIS ISSUE:
Overview
Office
Multihousing
Retail
Industrial
Hotels Hotel
Appendix
Retail Power Center | Eastern Region
Class A Class B Class C
Stabilized Trend* Stabilized Trend* Stabilized Trend*
Atlanta 7.25% - 7.75%
8.00% - 9.00%
10.00% - 12.00% ↓
Baltimore 6.75% - 8.00% ↓ 7.50% - 8.50%
8.00% - 10.00%
↓
Boston 6.50% - 7.00% I 7.25% - 8.00% ↓ 8.00% - 9.50%
Charlotte 7.00% - 7.50%
8.00% - 8.75% ↓ 9.00% - 10.00% ↓
Jacksonville 7.00% - 7.50% I 7.50% - 8.25%
8.00% - 11.00% I
Memphis 8.25% - 8.50% I 8.75% - 9.75% ↓ 9.50% - 11.50% ↓
Miami 6.50% - 7.25% I 7.00% - 7.75%
N/A N/A
↓
Nashville 7.00% - 7.50%
8.00% - 8.50%
9.00% - 9.50%
Orlando 7.00% - 7.50% I 7.50% - 8.25% I 8.00% - 11.00% I
Philadelphia 7.00% - 7.25% I 8.00% - 8.50%
9.00% - 10.50%
Pittsburgh 7.50% - 8.00% I 9.00% - 10.00%
Raleigh 6.50% - 7.50%
Tampa 7.00% - 7.50%
Washington, DC 6.75% - 8.00% ↓ 7.50% - 8.50%
* Compared to 1st half 2012
Atlanta
Baltimore
Boston
Charlotte
Jacksonville
Memphis
Miami
Nashville
Orlando
Philadelphia
Pittsburgh
Raleigh
Tampa
Washington, DC
↓
↓
↓
Decrease
Remain Flat
Increase
* Cap Rate Forecast represents the CBRE professional’s opinion of where cap rates are likely to trend in 1st half of 2013 in their local market.
I
I
I
↓
I
↓
I
10.00% - 11.00%
I
↓
7.50% - 8.75% ↓ 8.50% - 10.00% ↓
7.50% - 8.25%
8.00% - 11.00% N/A
CAP RATE FORECAST*
I
↓
8.00% - 10.00%
Class A Class B Class C
Stabilized Stabilized Stabilized
↓
I
I
↓
Cap Rate Survey
February 2013
>
23

IN THIS ISSUE:
Overview
Office
Multihousing
Retail
Industrial
Hotels Hotel
Appendix
Retail Power Center | Central Region
Class A Class B Class C
Stabilized Trend* Stabilized Trend* Stabilized Trend*
Austin 6.25% - 6.50%
8.00% - 8.25% ↓ 10.00% - 10.25% I
Chicago 6.00% - 6.50%
8.00% - 8.50%
10.00% - 12.00% ↓
Cincinnati 7.00% - 8.00% ↓ 8.00% - 9.00%
Cleveland 7.50% - 8.00%
Columbus 7.00% - 7.50%
Dallas 5.75% - 7.25%
Detroit 7.50% - 8.00%
Houston 6.25% - 7.25%
Indianapolis 7.00% - 7.50%
Kansas City 7.00% - 7.50%
Minneapolis 6.00% - 6.50%
San Antonio 6.75% - 7.50%
St. Louis 7.00% - 7.50%
* Compared to 1st half 2012
Austin
Chicago
Cincinnati
Cleveland
Columbus
Dallas
Detroit
Houston
Indianapolis
Kansas City
Minneapolis
San Antonio
St. Louis
↓
↓
↓
↓
↓
↓
↓
↓
↓
↓
↓
↓
8.75% - 9.25%
8.25% - 8.75%
7.50% - 8.75%
Decrease
Remain Flat
Increase
* Cap Rate Forecast represents the CBRE professional’s opinion of where cap rates are likely to trend in 1st half of 2013 in their local market.
I
↓
↓
I
I
↓
I
↓
I
9.00% - 10.00%
↓
10.00% - 14.00% I
10.00% - 12.00% I
9.25% - 10.75%
8.75% - 9.25%
10.00% - 14.00% ↓
7.50% - 9.00%
9.00% - 12.00% I
8.25% - 8.75%
10.00% - 12.00% ↓
8.25% - 8.75%
10.00% - 12.00% I
8.00% - 8.50% ↓ 10.00% - 12.00% ↓
7.75% - 9.00%
9.25% - 12.00% I
8.25% - 8.75%
10.00% - 12.00% ↓
CAP RATE FORECAST*
Class A Class B Class C
Stabilized Stabilized Stabilized
↓
I
↓
Cap Rate Survey
February 2013
>
24

IN THIS ISSUE:
Overview
Office
Multihousing
Retail
Industrial
Hotels Hotel
Appendix
Retail Power Center | Western Region
Class A Class B Class C
Stabilized Trend* Stabilized Trend* Stabilized Trend*
Albuquerque 7.00% - 8.00% ↓ 8.00% - 9.00% ↓ 9.00% - 10.00%
Denver 6.75% - 7.25%
7.75% - 8.25% I 9.00% - 10.00% ↓
Las Vegas 6.50% - 7.50% ↓ 7.00% - 8.00% ↓ 7.50% - 9.00%
I
Los Angeles 6.00% - 6.75%
7.00% - 8.00% ↓ 8.50% - 9.50% ↓
Orange County 6.00% - 6.75% ↓ 7.00% - 8.00% I 8.50% - 9.50% I
Phoenix 6.00% - 6.50%
6.50% - 7.50% I 8.00% - 9.00% I
Portland 6.00% - 6.75%
7.25% - 8.25%
8.50% - 10.50% I
Sacramento 6.50% - 7.50%
7.00% - 8.50%
8.50% - 10.50% ↓
Salt Lake City 7.50% - 8.50% ↓ 7.00% - 8.50% I 8.50% - 10.50% I
San Diego 6.00% - 6.75% ↓ 7.00% - 8.00%
8.50% - 9.50% I
San Francisco 5.25% - 6.25%
6.00% - 6.75%
8.00% - 9.00%
San Jose 6.25% - 6.75%
Seattle 6.25% - 7.50%
* Compared to 1st half 2012
Albuquerque
Denver
Las Vegas
Los Angeles
Orange County
Phoenix
Portland
Sacramento
Salt Lake City
San Diego
San Francisco
San Jose
Seattle
I
↓
↓
I
I
I
↓
Decrease
Remain Flat
Increase
* Cap Rate Forecast represents the CBRE professional’s opinion of where cap rates are likely to trend in 1st half of 2013 in their local market.
↓
↓
↓
I
7.25% - 7.75% I 9.00% - 9.50%
7.00% - 8.50% I 8.00% - 10.00% I
CAP RATE FORECAST*
Class A Class B Class C
Stabilized Stabilized Stabilized
↓
↓
↓
↓
Cap Rate Survey
February 2013
>
25

IN THIS ISSUE:
Overview
Office
Multihousing
Retail
Industrial
Hotels Hotel
Appendix
High Street Retail | National
Boston
Chicago
Los Angeles
Manhattan
Miami
Philadelphia
San Francisco
Seattle
Washington, DC
Class A
Stabilized Trend*
Boston 3.75% - 5.00% I
Chicago 5.00% - 5.50% ↓
Los Angeles 4.50% - 5.50% ↓
Manhattan 4.00% - 5.00%
Miami 4.00% - 6.00% ↓
Philadelphia 5.75% - 6.25% I
San Francisco 4.50% - 5.50% ↓
Seattle 4.50% - 5.50% ↓
Washington, DC 5.50% - 6.00% ↓
* Compared to 1st half 2012
CAP RATE FORECAST*
Class A
Stabilized
↓
Decrease
Remain Flat
Increase
* Cap Rate Forecast represents the CBRE professional’s opinion of where cap rates are likely to trend in 1st half of 2013 in their local market.
Cap Rate Survey
February 2013
>
26

IN THIS ISSUE:
Overview
Office
Multihousing
Retail
Industrial
Hotels Hotel
Appendix
Industrial | Overview
Cap Rate Survey
February 2013
>
Transaction activity in the industrial sector was up only slightly in 2012. According to figures from RCA, volume for the year came in at $36.9
billion, up only $1.5 billion from a year earlier. However, this slow growth is partly an artifact of the accounting behind the AMB/Prologis merger
in 2011, which is reported as a $4.2 billion sale, according to RCA. Without this transaction, volume would be up 18.4% from a year ago, closer
to the pace of growth for investment volume in the office and retail sectors.
CBRE Capital Markets and Valuation professionals expect that cap rates for stabilized Class A industrial assets will continue to compress in 2013
in 21 out of 41 markets surveyed. Here too there is room for further compression, with the average cap rate for this asset class at 6.5%, according
to the results of the survey. It is interesting to note that these professionals expect less investor appetite to move out on the risk spectrum within
the industrial sector. In the Class B segment of the market, only in 19 out of 41 markets is further compression anticipated, with expectations for
compression really falling off in the Class C segment. In that segment, only nine markets are expected to see enough interest to generate further cap
rate compression.
Select from the list below to access the current industrial cap rates and forecast.
Download a Complete Industrial Current Cap Rates Chart (PDF)
Download a Complete Industrial Cap Rate Forecast Chart (PDF)
27

IN THIS ISSUE:
Overview
Office
Multihousing
Retail
Industrial
Hotels Hotel
Appendix
Industrial | Eastern Region
Class A Class B Class C
Stabilized Trend* Stabilized Trend* Stabilized Trend*
Atlanta 6.25% - 7.50% I 7.25% - 8.50%
8.50% - 10.00%
Baltimore/Washington Corridor 5.75% - 6.25%
6.50% - 7.00%
7.00% - 7.75%
Boston 7.00% - 7.50% I 7.75% - 8.75%
10.00% - 11.00%
Charlotte 6.75% - 7.50%
7.25% - 8.00%
8.00% - 8.25%
Eastern PA (I-78/I-81) Corridor 5.75% - 6.25%
6.75% - 7.50%
7.75% - 8.50%
Jacksonville 7.50% - 7.75% I 8.50% - 9.50%
9.50% - 12.00%
Memphis 7.25% - 8.25%
8.25% - 9.00% I 9.00% - 10.00%
Miami 5.25% - 5.75% I 5.50% - 6.25%
6.00% - 7.00%
Nashville 6.50% - 8.00%
8.00% - 10.00% I 9.00% - 11.00%
Northern New Jersey 5.00% - 5.50% N/A 5.75% - 6.50% N/A 6.50% - 7.25% N/A
Orlando 6.75% - 7.50% I 8.00% - 9.00% I 9.00% - 11.00% ↓
Pittsburgh 7.50% - 8.25% I 8.50% - 9.50% I 9.50% - 10.50%
Raleigh 6.50% - 7.50%
7.50% - 8.50% I 9.00% - 12.00% ↓
Tampa 6.50% - 7.50% I 7.25% - 8.25% I 9.00% - 9.75%
* Compared to 1st half 2012
Atlanta
Baltimore/Washington Corridor
Boston
Charlotte
Eastern PA (I-78/I-81) Corridor
Jacksonville
Memphis
Miami
Nashville
Northern New Jersey
Orlando
Pittsburgh
Raleigh
Tampa
↓
↓
↓
↓
↓
↓
CAP RATE FORECAST*
Class A Class B Class C
Stabilized Stabilized Stabilized
* Cap Rate Forecast represents the CBRE professional’s opinion of where cap rates are likely to trend in 1st half of 2013 in their local market.
↓
↓
↓
↓
↓
↓
↓
I
↓
I
↓
↓
↓
↓
↓
↓
↓
I
Decrease
Remain Flat
Increase
Cap Rate Survey
February 2013
>
28

IN THIS ISSUE:
Overview
Office
Multihousing
Retail
Industrial
Hotels Hotel
Appendix
Industrial | Central Region
Class A Class B Class C
Stabilized Trend* Stabilized Trend* Stabilized Trend*
Austin 6.75% - 7.75% I 7.75% - 8.25%
Chicago 5.75% - 6.00%
↓
6.75% - 7.25%
↓
↓
8.50% - 8.75%
8.00% - 9.00%
Cincinnati 7.00% - 7.75% I 8.00% - 9.00% ↓ 9.00% - 10.00%
Cleveland 7.25% - 8.00% ↓ 8.50% - 9.00% ↓ 11.00% ↓
Columbus 7.00% - 8.00%
8.00% - 9.00%
10.00% - 13.00% ↓
Dallas 5.90% - 6.80% I 7.00% - 8.00%
8.50% - 9.50% I
Detroit 7.00% - 8.50%
8.50% - 10.00%
10.00% - 13.00% ↓
Houston 5.80% - 6.75% I 6.75% - 7.75% ↓ 8.50% - 9.50%
↓
↓
Indianapolis 6.75% - 7.25% I 8.00% - 9.00% I 9.50% - 10.50% ↓
Kansas City 7.00% - 7.50% I 8.00% - 8.50% I 9.00% - 10.00% I
Minneapolis 6.50% - 7.25% I 7.50% - 8.50%
9.00 % - 11.00% I
San Antonio 6.50% - 7.50% I 7.75% - 8.50%
9.00% - 10.50%
St. Louis 7.75% - 8.25% ↓ 8.25% - 9.00% I 9.00% - 11.00%
* Compared to 1st half 2012
Austin
Chicago
Cincinnati
Cleveland
Columbus
Dallas
Detroit
Houston
Indianapolis
Kansas City
Minneapolis
San Antonio
St. Louis
CAP RATE FORECAST*
Class A Class B Class C
Stabilized Stabilized Stabilized
↓
↓
↓
↓
↓
↓
↓
↓
↓
↓
↓
Decrease
Remain Flat
Increase
* Cap Rate Forecast represents the CBRE professional’s opinion of where cap rates are likely to trend in 1st half of 2013 in their local market.
Cap Rate Survey
February 2013
>
29

IN THIS ISSUE:
Overview
Office
Multihousing
Retail
Industrial
Hotels Hotel
Appendix
Industrial | Western Region
Albuquerque
Denver
Inland Empire
Las Vegas
Los Angeles
Orange County
Phoenix
Portland
Sacramento
Salt Lake City
San Diego
San Francisco
San Jose
Seattle
Class A Class B Class C
Stabilized Trend* Stabilized Trend* Stabilized Trend*
Albuquerque 7.50% - 8.50%
8.00% - 9.25%
9.00% - 10.00% ↓
Denver 6.00% - 6.50% I 6.50% - 7.00% I 8.50% - 9.50%
↓
Inland Empire 4.75% - 5.75% I 5.85% - 6.50% I 6.50% - 7.00%
Las Vegas 7.50% - 8.50% ↓ 8.50% - 9.50% ↓ 9.50% - 10.50% ↓
Los Angeles 4.75% - 5.75%
5.85% - 6.50% I 6.50% - 7.00%
Orange County 5.00% - 5.50% I 5.75% - 6.25%
7.00% - 7.75% I
Phoenix 6.50% - 7.50% ↓ 7.50% - 8.50% ↓ 8.50% - 9.25%
↓
Portland 7.00% - 8.00% I 8.50% - 9.50% ↓ 9.50% - 10.50% ↓
Sacramento 7.50% - 8.00%
8.00% - 8.50%
8.50% + I
Salt Lake City 7.00% - 7.50%
7.00% - 8.00%
8.00% - 10.00%
San Diego 5.50% - 6.00%
6.00% - 6.50%
7.25% - 7.75%
↓
↓
↓
San Francisco 5.00% - 6.00% I 6.00% - 7.25% I 8.00% - 10.00% I
San Jose 5.00% - 6.00% I 6.00% - 7.25% I 8.00% - 10.00% I
Seattle 5.00% - 5.75% I 6.00% - 6.75% I 6.75% - 7.25%
* Compared to 1st half 2012
CAP RATE FORECAST*
Class A Class B Class C
Stabilized Stabilized Stabilized
↓
↓
↓
↓
↓
↓
↓
↓
↓
↓
↓
↓
Decrease
Remain Flat
Increase
* Cap Rate Forecast represents the CBRE professional’s opinion of where cap rates are likely to trend in 1st half of 2013 in their local market.
Cap Rate Survey
February 2013
>
30

IN THIS ISSUE:
Overview
Office
Multihousing
Retail
Industrial
Hotels Hotel
Appendix
Hotels | Overview
Cap Rate Survey
February 2013
>
The CBRE Cap Rate Survey provides information on the hotel sector that is unavailable elsewhere. With total transaction activity in the sector
representing roughly 10% of annual activity across all commercial property sectors, often times there are simply not enough transactions to
develop reliable benchmarks of sales comparables. For a market where comparable sales are thin, our approach of combining the insights of
the CBRE Capital Markets and Valuation professionals as to the levels at which assets will trade is good way to get a relative sense of pricing.
Transaction activity for 2012 is off from a year earlier. According to the figures from RCA, investment volume in 2012 stood at $19.6 billion,
versus the $20 billion seen in 2011. This decline was a bit front-loaded, with declines starting in the fourth quarter of 2011 and continuing
through the third quarter of 2012. Activity turned the corner in Q4 2012, rising 49.5% from a year earlier, but it is too soon to tell if this
increase is a just blip, or rather a trend toward recovery.
The evidence from the CBRE Cap Rate survey suggests that the fourth-quarter increase may continue into 2013 for certain hotel sub-types. Across
the 36 markets surveyed, 13 markets in the limited-service segment and 8 markets in the economy segment are expected to see continued cap
rate compression in 2013. In the luxury and full-service segments, however, only three markets are earmarked for such compression.
Select from the list below to access the current hotels cap rates and forecast.
Download a Complete Hotels Current Cap Rates Chart (PDF)
Download a Complete Hotels Cap Rate Forecast Chart (PDF)
31

IN THIS ISSUE:
Overview
Office
Multihousing
Retail
Industrial
Hotels Hotel
Appendix
Hotels | National
* Compared to 1st half 2012
Luxury Full Service Select Service Economy
Stabilized Trend* Stabilized Trend* Stabilized Trend* Stabilized Trend*
Albuquerque 7.00% - 7.25%
8.00% - 9.00% I 8.25% - 9.50% ↓ 9.50% - 11.00%
Atlanta 7.00% - 8.00% I 8.00% - 9.50% ↓ 8.50% - 10.00% ↓ 9.00% - 11.00% I
Austin 7.25% - 7.50%
8.00% - 8.25%
8.75% - 9.00%
9.75% - 10.00% I
↓
↓
Baltimore 6.50% - 7.50% I 7.00% - 7.50% ↓ 7.00% - 8.00% ↓ 8.00% - 8.50% ↓
Boston 6.50% - 7.00% ↓ 7.00% - 8.00%
8.00% - 10.00% I 9.00% - 11.00% ↓
Charlotte 7.00% - 8.00%
8.00% - 9.00% ↓ 9.00% - 10.00% ↓ 11.00% - 12.00% ↓
Chicago 6.00% - 7.50% ↓ 6.00% - 7.50%
7.00% - 9.00% I 7.00% - 9.00%
Cincinnati 6.50% - 9.00% N/A 7.00% - 9.50%
8.00% - 10.00%
8.50% - 11.00%
Cleveland 6.50% - 9.00% N/A 7.00% - 9.50%
8.00% - 10.00%
8.50% - 11.00%
Columbus 8.00% - 9.00% N/A 9.00% - 10.00%
9.00% - 10.00% I 9.50% - 12.00%
Dallas 7.00% - 8.00% ↓ 7.50% - 8.50% I 7.50% - 8.50%
9.00% - 11.00% ↓
Denver 6.25% - 6.75%
7.75% - 8.25%
7.75% - 8.75% I 9.25% - 9.75% ↓
Detroit 8.00% - 8.50% I 9.00% - 10.00%
9.50% - 10.50% I 10.50% - 11.50%
Jacksonville 6.00% - 8.00%
7.00% - 9.00%
8.00% - 10.00% I 9.00% - 11.00% ↓
Kansas City 8.00% - 8.50% I 9.25% - 10.00% ↓ 8.50% - 9.00%
10.00% - 11.00% ↓
Las Vegas 7.00% - 8.00%
7.00% - 8.00%
7.50% - 9.00%
9.00% - 11.00% I
↓
↓
↓
↓
Los Angeles 7.00% - 7.75% I 7.00% - 8.00% ↓ 7.00% - 8.00% ↓ 8.00% - 8.50% ↓
Manhattan 4.50% - 5.50% I 6.00% - 7.00%
6.50% - 7.50%
8.00% - 9.00%
Miami 6.00% - 7.00%
↓
↓
↓
7.00% - 8.00%
↓
↓
↓
↓
↓
↓
↓
↓
I
I
↓
I
↓
↓
↓
↓
↓
↓
↓
7.50% - 9.00% ↓ 8.00% - 9.50%
Minneapolis 6.00% - 7.75% ↓ 7.50% - 9.50% ↓ 8.00% - 10.00% ↓ 8.50% - 11.00% ↓
Nashville 7.00% - 8.00%
8.00% - 9.50% ↓ 8.50% - 10.00% ↓ 9.00% - 11.00%
Orange County 7.00% - 7.75% I 7.00% - 8.00% ↓ 7.00% - 8.00% ↓ 8.00% - 8.50% I
Orlando 6.00% - 8.00%
7.00% - 9.00% ↓ 8.00% - 10.00% ↓ 9.00% - 11.00% ↓
Philadelphia 7.00% - 8.00% I 7.00% - 7.50% I 7.00% - 7.50% I 8.00% - 8.50% I
Phoenix 6.50% - 8.00% ↓ 7.50% - 9.00% ↓ 7.75% - 9.00%
Pittsburgh 7.00% - 7.50% N/A 8.00% - 8.50%
↓
8.25% - 9.00%
↓
↓
↓
↓
↓
↓
↓
↓
↓
↓
↓
9.50% - 12.00% ↓
9.00% - 10.00%
Portland 6.00% - 8.00% ↓ 7.00% - 9.00% ↓ 8.50% - 10.50% ↓ 9.00% - 11.00% ↓
Raleigh 7.50% - 8.50% I 7.75% - 8.75%
8.25% - 8.75%
10.00% - 11.00% I
Sacramento 8.00% - 9.00% N/A 8.50% - 9.50% N/A 9.00% - 10.00% N/A 9.00% - 10.50% N/A
San Antonio 7.00% - 8.00% I 7.50% - 8.50% ↓ 7.50% - 8.50% I 9.00% - 11.00% I
San Diego 7.00% - 7.75% I 7.00% - 8.00%
7.00% - 8.00%
8.00% - 8.50%
San Francisco 5.50% - 6.50% ↓ 6.50% - 7.50%
7.50% - 9.50% ↓ 9.00% - 11.00%
San Jose 6.50% - 7.50% ↓ 7.00% - 8.00% I 7.50% - 9.50% ↓ 9.00% - 11.00% I
Seattle 6.00% - 8.00% ↓ 7.00% - 9.00% ↓ 8.50% - 10.50% I 9.50% - 11.00%
Tampa 6.00% - 8.00%
↓
7.00% - 9.00%
↓
↓
↓
↓
8.00% - 10.00%
↓
↓
↓
↓
↓
↓
↓
9.00% - 11.00% I
Washington, DC 6.50% - 7.50% I 7.00% - 7.50% ↓ 7.00% - 8.00% ↓ 8.00% - 8.50% ↓
Cap Rate Survey
February 2013
>
32

IN THIS ISSUE:
Overview
Office
Multihousing
Retail
Industrial
Hotels Hotel
Appendix
Hotels | National
Albuquerque
Atlanta
Austin
Baltimore
Boston
Charlotte
Chicago
Cincinnati
Cleveland
Columbus
Dallas
Denver
Detroit
Jacksonville
Kansas City
Las Vegas
Los Angeles
Miami
Minneapolis
Nashville
New York City
Orange County
Orlando
Philadelphia
Phoenix
Pittsburgh
Portland
Raleigh
Sacramento
San Antonio
San Diego
San Francisco
San Jose
Seattle
Tampa
Washington, DC
Luxury Full Service Select Service Economy
Stabilized Stabilized Stabilized Stabilized
Decrease
Remain Flat
Increase
* Cap Rate Forecast represents the CBRE professional’s opinion of where cap rates are likely to trend in 1st half of 2013 in their local market.
Cap Rate Survey
February 2013
>
33

IN THIS ISSUE:
Overview
Office
Multihousing
Retail
Industrial
Hotels Hotel
Appendix
Appendix | Definitions
Cap Rate
Cap Rate Survey
February 2013
>
The going-in cap rate usually refers to the initial yield and is calculated as the ratio of the projected net income in the first year of the holding
period over the acquisition price of the property. This measure also represents the investors’ income return in the first year, but also in subsequent
years if NOI remains stable.
Stabilized Property Cap Rates
To derive the cap rate for a stabilized property assume the asset is leased at current market rents and has an occupancy rate in line with the long-
run market average. Based on these assumptions, use the in-place NOI and the probable sales price to calculate the stabilized cap rate.
Cap Rates (Office, Industrial, Retail, and Hotel)
Cap rate ranges are best estimates provided by CBRE professionals based on recent trades in their respective market as well as recent interactions
with investors. The ranges represent those cap rates that a given property will trade at in this current market. Stabilized cap rates are based on
in-place NOI for the latest year, before being adjusted for reserves. Value-add cap rates are based on projected stabilized NOI. Actual cap rates
within each asset class will vary, occasionally outside of the stated ranges, based on asset location/quality and property-specific opportunities for
NOI enhancement.
Cap Rates (Multihousing only)
Cap rate ranges are based on an estimated NOI derived by annualizing the last 90 days of revenue and subtracting what buyers would estimate
as stabilized, year one expenses after adjustments for real estate taxes and reserves. Actual cap rates within each asset class will vary, occasionally
outside of the stated ranges, based on asset location/quality and property-specific opportunities for NOI enhancement.
Value-Add Property Cap Rates (Office only)
To derive the value-add cap rate use a sales prices that would be achieved by a property underperforming in its market, whether through
abnormally high vacancy rates or through rents below those that are currently being achieved in the market. Assume the property is then stabilized
to achieve market rents and an occupancy rate in line with the market’s long run average to arrive at a stabilized NOI. Use the stabilized NOI
when calculating the Value-Add Cap Rate.
34

IN THIS ISSUE:
Overview
Office
Multihousing
Retail
Industrial
Hotels Hotel
Appendix
Appendix | Definitions (continued)
Value-Add Property Cap Rates (Multihousing only)
To derive the value-add cap rate use the return on cost based on the projected stabilized NOI value divided by the total investment.
Stabilized Property
A property that has an occupancy level at or above the local average and is leased at market rents.
Value-Add Property (Office & Multihousing only)
An underperforming property that has an occupancy level below the local average and/or is leased at below-market rents.
CBD
The Central Business District of a major city.
Suburban
Mainly residential area located within close proximity to a major city.
Class A
Best-of-class product, attract larger, top quality tenants with 5- and 10-year leases, often newer construction.
Class B
Older product, mostly 5-year leases, typically previously owned.
Class C
Typically an older building that offers space without amenities. Attracts moderate to low income tenants.
Cap Rate Survey
February 2013
>
35

IN THIS ISSUE:
Overview
Office
Multihousing
Retail
Industrial
Hotels Hotel
Appendix
Appendix | Definitions (continued)
HOTEL-SPECIFIC DEFINITIONS
Full Service
A hotel property with more than 150 rooms, room service, an on-site restaurant and a concierge service.
Luxury
Hotel chains that are priced in the top 15.0% in terms of average annual room rates, according to Smith Travel Research.
Select Service
A hotel property with less than 150 rooms, no room service and no on-site restaurant or concierge service.
Economy
Cap Rate Survey
Hotel chains that are priced within the 20.0% to 40.0% range in terms of average annual room rates, according to Smith Travel Research.
RETAIL-SPECIFIC DEFINITIONS
Neighborhood/Community Center (Grocery Anchored)
February 2013
>
Open-air retail center that is anchored by a grocery store and, in the case of community centers, a second major retail anchor. Can range from
75,000 to 350,000 square feet.
Power Center
Open-air retail center typically occupied by large format, big box, and value-oriented retailers, with very limited small shop tenant space.
Can range in size from 100,000 square feet to over 600,000 square feet.
HighStreet
The primary retail shopping thoroughfare in the premiere location of an urban sub-market, serving as a focal point for high end shops and
luxury retailers.
36

IN THIS ISSUE:
Overview
Office
Multihousing
Retail
Industrial
Hotels Hotel
Appendix
Appendix | Definitions (continued)
MULTIHOUSING-SPECIFIC DEFINITIONS
Infill/Urban
Cap Rate Survey
February 2013
>
Area considered inner-city plus built up environs, characterized by high population density and vast human features in comparison to areas
surrounding it.
Suburban
Surrounding residential areas of a larger city. Outer edge of a large city, or several aggregates of distant residential areas.
37

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CHRIS LUDEMAN
President
CBRE Capital Markets
ASIEH MANSOUR
Head of Research, Americas
CBRE Global Research & Consulting
BRIAN STOFFERS
Chief Operating Officer, Capital Markets
President, Debt & Equity Finance
CBRE Capital Markets
JIM COSTELLO
Managing Director, Americas Research
CBRE Global Research & Consulting
THOMAS MCDONNELL
President
RAY WONG
Executive Director, Americas Research
CBRE Global Research & Consulting
© Copyright 2013 CBRE Information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we have not verified
it and make no guarantee, warranty or representation about it. It is your responsibility to confirm independently its accuracy and completeness. This information is presented exclusively for use
by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of the CBRE Global Chief Economist.
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