CBRE CAP RATE SURVEY

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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
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CBRE CAP RATE SURVEY

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