Increases Continue
Average US retail capitalization rates increased 35 basis points in the 4th quarter of 2009 to 9.01%, based on the CBRE Valuation & Advisory Services (VAS) database. The chart below contains the results from 2003 through 2009 year end.
Q4 Values Down
Ending at 9.01%, cap rates were up again. The 35 basis point gain is slightly lower than the last few quarters (43 and 46 b.p.). Rates are now the highest recorded since the Q1 2003 start date of our series. The average sale price during the quarter was more than 80% higher than the 3rd quarter. The East region recorded the lowest cap rates, and the Midwest recorded the highest. Since year end 2007, retail cap rates are up 187 basis points.
The data points used in this update are confirmed closed transactions, adjusted for assumed financing, and are used to reflect overall market trends. Contact a local CBRE appraiser for a detailed overview of a specific market.
US Retail
Cap Rate Trend – Quarterly Average
| 2008 | 2009 | |||||||
| Region | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 |
| East | 6.81 | 6.64 | 6.72 | 7.86 | 8.13 | 7.74 | 8.83 | 8.21 |
| Midwest | 7.75 | 8.12 | 7.85 | 8.16 | 6.68 | 8.05 | 8.62 | 9.78 |
| South | 7.58 | 7.55 | 7.90 | 8.38 | 8.37 | 8.43 | 9.06 | 8.83 |
| West | 6.70 | 6.80 | 6.98 | 7.30 | 7.19 | 8.20 | 8.21 | 8.90 |
| Nation | 7.28 | 7.34 | 7.55 | 7.96 | 7.77 | 8.20 | 8.66 | 9.01 |
| Change | 0.14 | 0.06 | 0.21 | 0.41 | -.19 | 0.43 | 0.46 | 0.35 |
Source: CBRE
[...] Retail Cap Rate Report Here it is again, the National Retail Cap Rate Report… CLICK HERE National Retail Cap Rate [...]
By: In Case You Missed It… National Retail Cap Rate Report « Cap Rate Advisor on February 11, 2010
at 4:20 pm