Cbre cap rate survey. CBRE survey: Cap rates for CRE assets stable so far in 2019

Hotel Market Forecasts & Benchmarking

cbre cap rate survey

This late in the cycle, operating fundamentals are creating downward pressure on investment activity which is down almost 50 percent from 2018. Big-box and other retailer closures continued to influence the perceived risk profile for power centers, with average cap rates increasing by 6 bps to 8. Cap rates in Tier I suburban locations for full-service hotels increased by 20 bps to 8. Demand for high-quality retail assets was strong, with Class A product in all three retail sectors the lowest, ranging from 4. Due to high competition for core properties, investors remain interested in assets with a higher risk profile.

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Hotel Market Forecasts & Benchmarking

cbre cap rate survey

Throughout the North American survey, Class A retail product ranged from 4. Class A cap rates declined 5 bps to 5. Thought Leadership Synthesizing macro factors and leading indicators into actionable hotel research. The average rate for acquisitions of stabilized industrial assets for all tiers and classes fell by 5 bps to 6. According to the North America Cap Rate Survey, multifamily and industrial cap rates tightened the most in H1 2019, with office, retail and hotel cap rates exhibiting modest movement. In the suburbs, stabilized office cap rates remained at 7.

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CBRE survey: Cap rates for CRE assets stable so far in 2019

cbre cap rate survey

Class A industrial and neighborhood retail, however, signaled strong investor sentiment as cap rates in those sectors posted below the national average. Chicago recorded Class A rates at 5. Experience the Platform See first hand why top investors, developers, management companies, and brands are clients. Over the next six months, retail cap rates are expected to see relatively uniform movement across all segments. This trend held true in Phoenix, where multifamily cap rates continued to fall.

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Hotel Market Forecasts & Benchmarking

cbre cap rate survey

Continued cap rate stability is expected in the remainder of 2019, with the hotel sector experiencing the most mixed sentiment. Going forward, clients will now see a version of our forecasts based on the Oxford Economics baseline scenario. Stabilized suburban office cap rates remained at 7. Meanwhile, expected returns on cost of Class B value-add industrial properties dropped 25 bps to 6. Suburban Class A cap rates fell 13 bps to 4. Expectations for cap rate movement across retail segments is relatively uniform over the next six months. We will also continue to take our own view on the outlook for the U.

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What is a Good Cap Rate for an Investment Property?

cbre cap rate survey

Cap rates for infill stabilized property acquisitions decreased 21 bps to an average of 4. Many investors have exhibited a shift toward high-quality properties in secondary markets. Cap rates for urban infill stabilized assets averaged 5. This suggests that some investors are trading class for value, finding better opportunities in lower-quality assets as well as in secondary and tertiary markets. High-street cap rates were relatively stable and remained the lowest of all retail property categories at 4. The most dramatic increases occurred among full-service and economy segments in Tier I cities. Thanks to moderate growth, low inflation and falling long-term interest rates, cap rates for commercial real estate assets held steady in the first half of 2019.

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Hotel Market Forecasts & Benchmarking

cbre cap rate survey

An advantageous balance of moderate growth, low inflation, and falling long-term interest rates in the U. In Chicago, Class A cap rates fell as low as 4. Instead of hitting the pause button, they have instead shown a strong appetite for real estate from debt and equity capital. This quarterly report presents highlights from the third quarter of 2019 relative to our 2019 Outlooks for major Canadian markets. The found that multifamily and industrial cap rates tightened the most in H1 2019, while office, retail and hotel cap rate movements were more modest. The average rate for acquisitions of all tiers and classes of stabilized assets for fell to 6. In Chicago, two sectors have a favorable outlook as they came in below the national average.

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