CBRE CAP RATE SURVEY

IN THIS ISSUE:
Overview
Office
Multihousing
Retail
Industrial
Hotels Hotel
Appendix
Retail | Overview
Cap Rate Survey
February 2013
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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)
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