REAL ESTATE REPORT - REDI-net.com
REAL ESTATE REPORT - REDI-net.com
REAL ESTATE REPORT - REDI-net.com
- TAGS
- real
- estate
- redi-net.com
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
RERC © <strong>REAL</strong> <strong>ESTATE</strong> <strong>REPORT</strong> - THE NATIONAL <strong>REAL</strong> <strong>ESTATE</strong> AUTHORITY<br />
West Investment Criteria<br />
28 WWW.RERC.COM<br />
Regional Investment Criteria - 4Q 2010 | Third-Tier 1 Investment Properties<br />
Office Industrial Retail<br />
CBD Suburban Warehouse R&D Flex Regional Mall Power Center Neigh/Comm<br />
WINTER 2011 | VOL 39 | NO 4<br />
Apartment Hotel<br />
Pre-tax Yield (IRR) (%)<br />
Range 8.0 - 14.0 8.0 - 15.0 8.0 - 14.0 8.0 - 14.0 8.0 - 14.0 8.0 - 13.0 8.0 - 14.0 8.0 - 14.0 7.0 - 14.0 9.0 - 16.0<br />
Average 11.3 11.5 11.1 11.3 11.3 11.4 11.5 11.3 10.0 13.0<br />
Going-In Cap Rate (%)<br />
Range 7.0 - 11.0 7.5 - 10.5 7.0 - 12.0 7.0 - 12.0 7.0 - 12.0 6.5 - 11.0 7.5 - 11.0 6.5 - 11.0 6.0 - 12.0 8.0 - 13.5<br />
Average 9.1 9.2 9.0 9.2 9.3 9.2 9.4 9.1 8.2 10.6<br />
Terminal Cap Rate (%)<br />
Range 8.0 - 11.0 8.0 - 11.0 8.0 - 12.5 8.0 - 12.5 8.0 - 12.5 8.0 - 12.0 8.0 - 12.0 8.0 - 12.0 6.5 - 11.0 8.5 - 14.0<br />
Average 9.8 10.0 9.8 10.1 10.1 9.9 10.1 10.0 9.0 11.5<br />
Midwest Investment Criteria<br />
Pre-tax Yield (IRR) (%)<br />
Range 9.0 - 16.0 9.0 - 15.0 9.0 - 15.0 9.0 - 15.0 9.0 - 15.0 8.8 - 16.0 8.5 - 16.0 8.5 - 16.0 8.0 - 15.0 9.0 - 16.0<br />
Average 12.3 12.1 11.9 11.9 11.8 12.3 11.8 12.2 10.9 12.8<br />
Going-In Cap Rate (%)<br />
Range 8.0 - 13.0 8.0 - 13.0 8.0 - 13.0 8.0 - 13.0 8.0 - 13.0 8.0 - 15.0 8.0 - 14.0 8.0 - 14.0 7.0 - 12.0 8.0 - 15.0<br />
Average 10.3 10.4 10.1 10.3 10.3 10.4 10.0 10.3 9.3 11.6<br />
Terminal Cap Rate (%)<br />
Range 8.0 - 14.0 8.0 - 15.0 8.0 - 14.0 8.0 - 14.0 8.0 - 14.0 8.0 - 15.0 8.0 - 15.0 8.0 - 15.0 7.5 - 13.0 9.0 - 15.0<br />
Average 10.7 10.9 10.8 10.7 10.7 11.0 10.6 10.9 9.8 11.7<br />
South Investment Criteria<br />
Pre-tax Yield (IRR) (%)<br />
Range 8.0 - 15.0 8.5 - 15.0 9.5 - 15.0 9.0 - 15.0 8.0 - 15.0 9.5 - 15.0 9.5 - 16.0 9.0 - 15.5 8.0 - 15.5 9.5 - 16.0<br />
Average 11.2 11.7 11.5 11.7 11.7 11.8 11.7 12.1 11.6 12.8<br />
Going-In Cap Rate (%)<br />
Range 7.5 - 12.0 7.5 - 11.5 7.5 - 12.0 7.5 - 12.0 7.5 - 12.0 7.0 - 12.0 7.0 - 11.0 7.5 - 11.5 7.0 - 11.5 7.0 - 14.0<br />
Average 9.7 9.7 9.6 9.8 9.8 9.6 9.6 9.8 9.2 10.5<br />
Terminal Cap Rate (%)<br />
Range 8.5 - 12.5 8.5 - 12.0 9.0 - 12.0 9.0 - 12.0 9.0 - 13.0 7.8 - 12.0 8.0 - 12.0 8.5 - 13.0 8.0 - 13.0 8.0 - 14.0<br />
Average 10.3 10.4 10.4 10.5 10.6 10.3 10.4 10.6 10.1 11.2<br />
East Investment Criteria<br />
Pre-tax Yield (IRR) (%)<br />
Range 8.8 - 15.0 8.8 - 15.0 9.0 - 14.0 9.0 - 15.0 7.5 - 14.4 8.0 - 15.0 8.0 - 15.0 9.0 - 15.0 7.5 - 14.0 10.0 - 17.5<br />
Average 11.1 11.2 11.1 11.3 11.2 10.8 11.1 11.4 9.9 13.1<br />
Going-In Cap Rate (%)<br />
Range 7.5 - 12.0 7.5 - 11.5 7.5 - 11.3 7.5 - 12.0 7.5 - 11.0 7.5 - 12.5 7.5 - 12.0 8.0 - 15.0 6.0 - 12.0 8.0 - 15.0<br />
Average 9.3 9.4 9.6 9.7 9.7 9.6 9.6 9.7 8.5 11.1<br />
Terminal Cap Rate (%)<br />
Range 8.0 - 12.5 8.0 - 12.0 8.0 - 12.5 8.0 - 13.0 8.0 - 11.8 8.0 - 14.0 8.0 - 12.0 8.0 - 15.0 7.5 - 13.0 9.5 - 15.5<br />
Average 9.9 10.0 10.2 10.3 10.3 10.3 10.1 10.3 9.1 11.9<br />
1 Third-tier investment properties are defined as older properties with functional inadequacies and/or marginal locations.<br />
A list of RERC Defined Regions is located in the back of this report in the “Scope and Methodology” section.<br />
© 2011 <strong>REAL</strong> <strong>ESTATE</strong> RESEARCH CORPORATION. ALL RIGHTS RESERVED.
Change language