Cbre cap rate survey february 2012 investing economic. The largest caprate decreases were in tier ii and tier iii markets and in class b and class c assets. Cbre hotels team of over 265 hotel specialists understands the unique challenges and opportunities that come with investing in and divesting hotel properties. Office and industrial sectors continue to show strength, while the retail. Economic indicators pwc real estate investor survey, q3 2016 arate on unleveraged, allcash transactions.
Cbre north america cap rate survey first half 2015. Cbre is pleased to present its semiannual north america cap rate survey for h1 2017, which reveals cap rates and pricing trends for all major property types in major markets across the u. 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 cbre. The long term view of the survey respondents present a similar story as the cap rate trends, as evident by the. Cap rate compression was moderate across asset classes and markets, however.
Cbre researchs buyer underwriting survey of prime mid and highrise product continued to reect a competitive transactional environment, with unlevered. The gap between cap rates and the 10year government bond yield 1. At 21%, hightech claimed the largest share of major u. The quarterly report provides access to cb richard ellis s thought leading analysis, enabling timely and informed business decisions. While parties may disagree somewhat on the income to be capitalized, it is the cap rates that drive most valuation disputes. Cap rate studies are particularly useful in assessment litigation to support the key metric in estimating market value. Q1 underwriting survey reflects stable expectations for prime. The threepage report concludes investors are exploring secondary markets as capitalization cap rates continue to compress in the selfstorage sector. North america cap rate survey second half 2018 cbre. A summary of results from the cb richard ellis, inc.
Despite these transformational changes to our business, cbres 2020 u. By market, cap rates and asset prices may vary substantially. Cbres north america cap rate survey for h2 2015 revealed that cap rates. Constuction as a % of inventory office industrial source. The spread between implied cap rates and the 10year treasury, at 293 bps, was less. Pdf download a complete multihousing cap rate forecast and investor interests chart pdf. Cbre research, q3 2018 national average cap rate allproperties national average cap rate 10yr goc bond yield. Global office occupier guide understanding retail destinations guide outlook. Office cap rates were generally stable and cap rates for hotels were also firm. Cbre expects gdp growth will decline by 4% in 2020. We expect caprate stability in the second half of 2018. Cbre is pleased to present its semiannual north america cap rate survey for h2 2018, which reveals cap rates and pricing trends for all major property types in major markets across the u.
Erix is cbre s global research application that records aggregated comparable property market data for over 200 global cities. The h1 2016 survey revealed virtually unchanged cap rate conditions for stabilized infill and suburban multifamily acquisitions. Capital markets cap rate survey click to enter a capital markets publication march 2011. Note that for new product, net absorption is included in the statistics when the property has stabilized. Dec 02, 2015 t the h2 2014 cbre cap rate survey found the most significant national cap rate declines within the hotel sector. We are pleased to present the cbre north america cap rate survey for the first half of 2015, which highlights investment trends for all property types in each of the key markets across the u. Looking to 2016, the bank of canada is expected to maintain current interest. Multifamily, q2 2016 multifamily maintains strength. Cap rate forecast represents the cbre professionals opinion of where cap rates are likely to trend in first half of 2011 in their local market. Research reports for real estate market in singapore, asia pacific apac and overseas. Cbre leverages the comprehensive perspective provided by fulltime researchers across canada and around the world and couples it with local market insight to anticipate whats next and determine what trends mean for our clients real estate assets and bottom line. The retail sector had the second highest cap rate compression nationally. Investor interests represents the local cbre professionals opinion on the current level of investor interest as compared to second half of 2010 in their local market.
At the heart of the survey are current cap rates for stabilized acquisitions, expected returns on cost for valueadd acquisitions, cap rate trends since the previous. As inflation and interest rates ticked down, so did cap rates, yet we still underwrite with a 1970s fearofinflation rule of 50 to 100 basis points added to exit cap rates. New trends in real estate, statistics and opportunities in investment property. Cbres annual uk market outlook report takes a comprehensive look at the prospects for real estate in the year ahead. Cbre is the worlds largest commercial real estate services firm serving owners, investors and occupiers. For individualasset sales the change was smaller at 14. The canadian national average cap rate reached a record low of 5. You have reached your report download limit for today. Industry sectors that export goods and services to china could be particularly affected, as well as u. With more professionals focused on the office sector than any other firm globally, cbre office services delivers innovative corporate real estate solutions. At the heart of the survey are current cap rates for stabilized acquisitions, expected returns on.
Cbre research, q4 2016 record low national average cap rate allproperties national average cap rate 10yr goc bond yield spread200 0 200 400 600 800 1,000 1,2002. Cbre north america cap rate survey berkeley, california. Overview pg 2 office pg 5 multihousing pg 12 retail pg 16 industrial pg 23 hotels pg 27 appendix pg 30. Cap rate pricing in class a assets and in tier i markets was generally stable. Outlook predicts a very good year for commercial real estate. The h2 2014 cbre cap rate survey found the most significant national cap rate declines within the hotel sector. However, the sentiment of survey respondents varied by property type, segment, class and metrotier. Q1 underwriting survey reflects stable expectations for. Investor demand for us commercial real estate assets expanded in 2011.
The hightech industrys job growth rate is more than four times the national average since 2010 and is the most important driver of real estate demand for tech30 office markets. Discount rate irr, internal rate of return in an allcash transaction, based on annual yearend compounding. Overall cap rate oar, initial rate of return in an allcash transaction. Cbre india is a global commercial real estate services company providing solutions to the property owner, investor and occupier tenant. The report covers and provides insights of the macroeconomic aspects, highstreet retail market trends, capital market transaction of retail assets, and outbound activities of japanese retailers. Cbre market experts quarterly audit and analysis of the factors driving the development of.