CBRE Cap Rate Survey August 2011

CBRE Cap Rate SuRvey

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A CBRE Publication August 2011

In This Issue:

Overview pg 2

Office pg 5

Multihousing pg 12

Retail pg 16

Industrial pg 20

Hotels pg 24

Appendix pg 28

In ThIs Issue:

Overview

Office

Multihousing

Retail

Industrial

hotel

Appendix

Cap Rate Survey August 2011

2

<< | >>In ThIs Issue:

Overview

Office

Multihousing

Retail

Industrial

hotel

Appendix

u.S. commercial real estate markets have been in recovery for well over a year now. Low interest rates and mounting global liquidity have attracted

a disproportionate share of institutional capital flows to u.S. real estate. according to Real Capital analytics (RCa), transaction volume surged

during the first half of 2011 with property sales totaling $90.6 billion. Strong institutional demand for office and multihousing assets has accounted

for much of the sales activity. CBD office, in particular, has been a prime target of cross-border investors. Demand for multihousing has also been

supported by a robust recovery in underlying fundamentals and the availability of still favorable financing by the GSes. More recently, a rising

volume of large retail portfolio sales have been noted during the second quarter as investors become relatively bullish on retailers longer term.

Despite the recent volatility in the broader equity and fixed income markets resulting from the downgrade of the u.S. from aaa to aa+, commercial

real estate should continue to attract institutional capital given real estate’s critical role in a well-diversified multi-asset portfolio. private equity real

estate returns as measured by the NCReIF property Index (NpI) have also outpaced other traditional and alternative asset classes. NpI annualized

returns through the second quarter of 2011 totaled 16.7%, better than returns for stocks and bonds during the same period.

Greater risk aversion resulting from the softening economic growth and increased market gyrations, however, should direct a greater share of

capital to less risky, core real estate. the highest quality assets with credit tenants and staggered, longer-term leases, located in the primary markets

will be favored targets. In this uncertain environment, investors have a greater appetite for core real estate assets that provide much more stable

yields. Due to investor appetite for such assets, our expectation is that transaction volume should approach an estimated $200 billion this year.

this is comparable to levels seen back in 2004 and almost double the levels seen in each of the past three years.

In light of continued investor demand for higher-quality properties, pricing for core assets in primary markets continues to rise. this trend is reflected

in the upward movement of the average cap rates as reported by RCa. In this edition of CBRe’s Cap Rate Survey, an overwhelming number of

experts in the field also report continued downward pressure on cap rates across the main property sectors including: CBD office, suburban office,

retail, industrial, apartments and hotels. Gateway markets continue to achieve rich pricing relative to second-tier markets. Rising values have also

encouraged investors to list more properties for sale. the volume of new offerings jumped significantly in the second quarter of 2011 according

to RCa.

United States Overview

In ThIs Issue:

Overview

Office

Multihousing

Retail

Industrial

hotel

Appendix


3


Overview

Office

Multihousing

Retail

Industrial

hotel

Appendix

the one risk facing commercial real estate capital markets is the trajectory of the u.S. economy and financial markets. the uS faces multiple

challenges including a tepid economic recovery, a rising sovereign debt burden and policy gridlock in Washington. this led Standard & poor’s to

downgrade u.S. sovereign credit from aaa to aa+. the downgrade centered on two factors:

• Anemiceconomicgrowth:TheU.S.economygrewataslow0.9%annualizedrateduringthefirsthalfof2011.Expectationsforastronger

reboundinthesecondhalfhavebeenadjusteddownward.Economicgrowthshouldaveragecloserto3%inthesecondhalfofthisyear

incomparisonto3.5%anticipatedearlieron.Inordertoalleviategrowingdeficitanddebtproblems,theU.S.needsamuchstronger

economicreboundthancurrentlyrealized.

• UnsustainableDebtTrajectory:PublicdebtasashareofGDPhasacceleratedmassively,risingfromaround50%priortothe2008-2009

recessiontoover80%duringthefirstquarterofthisyear.Weakeconomicgrowthandtheinabilityforpolicymakerstomakethehard

decisionsnecessarytotacklethedebtledS&PtodowngradeU.S.longer-termtreasurybonds.

the initial impact of this downgrade has been to increase demand for safe-haven assets as investors unwound their risk positions. Ironically, this has

led to greater demand for u.S. treasuries, driving yields of the 10 year note to below 2.5%. Spreads have increased for all risk-assets, including

commercial real estate. But the all-in cost of capital has not changed materially given the decline in benchmark yields. Both debt and equity capital

are available for real estate given the role that commercial real estate plays in a well-diversified multi-asset portfolio. the lower value of the u.S.

dollar is also encouraging cross-border capital flows to the u.S.

economic and financial market volatility, however, will impact business and consumer confidence. this may delay new consumption and business

spending, weighing in on economic growth in the near-term. Our expectation, however, is that the u.S. economy will avoid another recession

and continue to expand, averaging 2.5% this year and by another 2.5% in 2012. Monetary policy remains highly accommodative with the Fed

anticipating holding interest at zero through the first half of 2013. Corporate earnings are also a bright spot during the current economic malaise.

Corporations have reportedly $2 trillion of cash sitting on their balance sheets. as uncertainty subsides, we expect businesses to begin hiring and

spending on much needed upgraded equipment.

the projected economic recovery should continue to support improvements in real estate market fundamentals. all sectors, with the exception of

retail, report falling vacancy rates. During the second quarter, office vacancy rates fell to 16.2%. Both CBD and Suburban office markets improved.

United States Overview (continued)

In ThIs Issue:

Overview

Office

Multihousing

Retail

Industrial

hotel

Appendix


4


Overview

Office

Multihousing

Retail

Industrial

hotel

Appendix

the office sector continues to enjoy strong transaction volume, with much of the focus on Washington DC and Manhattan which accounted for more

than half of the sales. For the first half of 2011, the volume of office transactions totaled just under $25 billion, up 77% year over year.

Similar to the office sector, industrial availability continued to decline in the second quarter of 2011. Large regional distribution centers and tech

hubs improved the most, including Riverside, Boston, San Francisco, Seattle, and San Jose. the recent recovery in the manufacturing ISM survey is

also reflected across the nation’s manufacturing markets. Detroit in particular is benefiting from the resurgence in the auto manufacturing activity.

During the first half of 2011, much of the new industrial sales were concentrated in warehouse/distribution centers as compared to flex. RCa reports

that multiple trades of large distribution centers at major hubs such as Los angeles and Chicago have started to take place at sub-6.0% yields, rare

so far during this tepid recovery. Our survey of stabilized industrial cap rates also report the same trend with some instances of cap rates below 5%

in the best markets for the best industrial product.

Retail has been the only property sector to report deteriorating fundamentals. During the second quarter of 2011, retail availability rates rose to

13.3%, marking the second quarterly rise. uncertainty regarding consumer activity has led to retailers cutting back on space requirements. the

demand recovery for neighborhood, community and strip centers has stalled. Retail transactions started to gain momentum only in the last quarter.

according to RCa, sales volume ratcheted up to $17 billion. More strip centers reportedly changed hands last quarter than all of 2010. the

Blackstone/Centro deal accounted for a large part of the upsurge in quarterly activity. Investor interest in retail properties continues to drive down

cap rates despite softening market conditions.

Multihousing has enjoyed the healthiest fundamentals as compared to the other property sectors. Data through the second quarter of 2011 indicate

that u.S. apartment demand continues to rise with vacancy rates at 5.4%, very near market equilibrium rates. Landlords are achieving rent growth

momentum and concessions continue to burn away. Sales of garden apartments surged during the first half of 2011 as investors allocated a large

portion of their real estate portfolio to multihousing assets. Improving fundamentals and strong underlying net operating income from such assets

continues to draw yield-hungry investor to this property type.

hotel transaction activity has grown quickly in 2011. Compared to the pace of activity seen in the first half of 2010, sales volume was up nearly

150% in the first half of 2011. Cap rates for stabilized assets have been the lowest in markets like New york, Boston, San Francisco and Seattle

where cap rates have dipped below 6% for the luxury segment.

United States Overview (continued)

In ThIs Issue:

Overview

Office

Multihousing

Retail

Industrial

hotel

Appendix


5


Overview

Office

Multihousing

Retail

Industrial

hotel

Appendix

Office | Overview

Thepaceofofficeinvestmentactivityinthefirsthalfof2011isjustover90%greaterthanthepacesetinthefirsthalfof2010.Partofthisgrowthissimplyafunctionofasmallnumbergrowingquicklywithdealactivityat$13billioninthefirsthalfof2010accordingtofiguresfromRealCapitalAnalytics.Withtransactionactivityjustunder$25billiondealactivityinthefirsttwoquartersofthisyearexceedsthean-nualactivityseeninthemarketin2009.

TheCBRECapRateSurveyhighlightsasignificantdisparityininvestordemandforofficeassetsacrossdifferenttypesofmarkets.Thereisa450basispointspreadbetweenthelowestandhighestcapratesforstabilizedClassAofficeassetsinCBDsubmarketsandroughlya340basispointspreadforassetsinSuburbansubmarkets.ThelowestcapratesareseenforassetsinmajorgatewaymarketswhereinvestoractivityisquitestrongwhileassetsinstrugglingindustrialcitiesoftheMidwestdonotseethesameinterest.

Select from the list below to access the current CBD office cap rates and forecast.

Download a Complete Office CBD Current Cap Rates Chart (PDF)

Download a Complete Office CBD Cap Rate Forecast Chart (PDF)

Select from the list below to access the current suburban office cap rates and forecast.

Download a Complete Office suburban Current Cap Rates Chart (PDF)

Download a Complete Office suburban Cap Rate Forecast Chart (PDF)

http://marketing.cbre.com/IGMC/CapRate_Aug2011/1H 2011_CapRateTable_OfficeCBD_CapRate.pdf

http://marketing.cbre.com/IGMC/CapRate_Aug2011/1H 2011_CapRateTable_OfficeSuburban_CapRate.pdf

http://marketing.cbre.com/IGMC/CapRate_Aug2011/1H 2011_CapRateTable_OfficeCBD_Forecast.pdf

http://marketing.cbre.com/IGMC/CapRate_Aug2011/1H 2011_CapRateTable_OfficeSuburban_Forecast.pdf

In ThIs Issue:

Overview

Office

Multihousing

Retail

Industrial

hotel

Appendix


6


Overview

Office

Multihousing

Retail

Industrial

hotel

Appendix

Office CBD | eastern Region

* Compared to 2nd Half 2010

CAP RATe FOReCAsT*

Class A Class B Class C

stabilized Value Add stabilized Value Add stabilized Value AddAtlanta

Baltimore

Boston

Charlotte

Jacksonville

Miami

nashville

new York City

Orlando

Pittsburgh

Philadelphia

Raleigh

Tampa

Washington, DC

* Cap Rate Forecast represents the CBRe professional’s opinion of where cap rates are likely to trend in 2nd half of 2011 in their local market.

Decrease

RemainFlat

Increase

Class A Class B Class Cstabilized Trend* Value Add Trend* stabilized Trend* Value Add Trend* stabilized Trend* Value Add Trend*

Atlanta 6.90% - 7.10%

↓

8.50%

I

8.00% - 8.50%

↓

9.00% - 10.00%

↓

10.00% - 12.00%

I

10.00% - 12.00%

↓

Baltimore 6.25% - 6.75%

↓

7.50% - 8.00%

↓

8.00% - 8.50%

↓

8.00% - 8.50%

↓

9.50% - 10.00%

↓

9.50% - 10.00%

↓

Boston 4.50% - 5.00%

↓

7.50% - 8.50%

↓

6.50% - 7.00%

↓

7.00% - 8.50%

↓

8.00% - 9.00%

↓

9.00% - 10.00%

↓

Charlotte 7.00% - 7.50%

↓

7.50% - 8.00%

↓

7.75% - 8.25%

↓

8.50% - 9.00%

↓

9.00% - 9.50%

I

10.00% - 10.50%

I

Jacksonville 7.25% - 7.50%

↓

8.50% - 9.00%

↓

9.00% - 9.25%

↓

9.50% - 10.00%

↓

12.00% - 13.00% ↓ 12.00% - 13.00%

↓

Miami 6.50% - 7.00%

↓

7.25% - 8.00%

↓

7.25% - 8.50%

I

8.00% - 9.50%

I

8.25% - 9.50%

I

10.00% - 12.00% ↓

nashville 7.75% - 8.25% I 8.25% - 8.50%

↓

8.75% - 9.00%

↓

9.00% - 9.50%

I

9.50% - 9.75%

↓

10.00%

I

new York City 5.00% - 5.50%

↓

5.00% - 6.00%

↓

5.50% - 6.50%

↓

6.50% - 7.50%

I

N/a N/a N/a N/a

Orlando 6.75% - 7.00%

↓

7.00% - 8.00%

↓

7.25% - 7.75%

↓

7.50% - 8.00%

↓

8.50% - 9.00%

↓

8.75% - 9.25%

↓

Philadelphia 7.00% - 7.50%

↓

7.50% - 8.00%

I

8.00% - 8.50%

↓

8.50% - 9.00%

↓

9.25% - 9.75%

↓

10.00% - 11.00%

↓

Pittsburgh 7.50% - 8.00%

↓

8.00% - 8.50%

↓

8.25% - 8.75% ↓ 9.00% - 9.50%

↓

10.00% - 11.00%

I

11.00% - 12.00%

↓

Raleigh 7.00% - 8.50%

↓

7.75% - 8.50%

↓

8.00% - 9.50%

↓

8.25% - 9.00%

↓

8.50% - 11.00%

I

8.75% - 9.75%

↓

Tampa 6.75% - 7.75%

↓

8.50% - 9.50%

I

8.25% - 9.25% I 9.00% - 10.00%

I

9.50% - 10.50%

I

10.00% - 11.00%

IWashington, DC 4.75% - 5.50%

↓

4.75% - 5.50%↓

5.50% - 6.00%↓

6.25% - 6.75%↓

5.50% - 6.00%↓

6.00% - 6.75%↓

In ThIs Issue:

Overview

Office

Multihousing

Retail

Industrial

hotel

Appendix


7


Overview

Office

Multihousing

Retail

Industrial

hotel

Appendix

Office CBD | Central Region


Austin 5.75% - 7.75%

↓

6.00% - 8.00%

↓

7.25% - 8.50%

↓

7.50% - 9.00%

↓

8.00% - 9.00%

↓

8.50% - 9.50%

↓

Chicago 6.25% - 6.50%

I

6.50% - 6.75%

I

7.00% - 7.25%

↓

7.25% - 7.50%

↓

8.50% - 9.50%

↓

9.50% - 11.50%

I

Cincinnati 8.25% - 9.25%

↓

9.00% - 10.00%

↓

9.50% - 10.50%

↓

10.00% - 11.00%

↓

10.00% - 12.00%

I

11.00% - 13.00%

↓

Cleveland 8.75% - 9.00% N/a 9.25% - 9.50% N/a 9.50% - 10.00% N/a 10.50% - 11.00% N/a 11.00% N/a 11.00% - 12.00% N/a

Columbus 8.00% - 9.00%

↓

9.00% - 10.00%

↓

10.00% - 11.00%

I

10.75% - 11.50%

I

11.00% - 12.00%

↓

11.75% - 12.50%

I

Dallas 8.50% - 9.00%

↓

8.50% - 9.00%

↓

9.50% - 10.00%

I

10.00% - 11.00%

↓

10.00% - 12.00%

I

12.00% - 14.00% ↓

Detroit 8.50% - 10.00%

I

9.00% - 11.00%

I

9.00% - 12.00%

I

10.00% - 14.00% ↓ 10.00% - 13.00%

I

12.00% - 15.00%

I

houston 6.00% - 7.00%

I

7.50%

I

7.50% - 8.00%

↓

8.50% - 8.50%

↓

9.50% - 10.00%

↓

11.50% - 12.00%

↓

Indianapolis 8.00% - 8.50%

↓

10.50% - 11.25% ↓ 9.75% - 10.25%

I

13.00% - 13.50% ↓ N/a N/a N/a N/a

Kansas City 8.50% - 9.50%

↓

9.00% - 10.00% ↓ 9.50% - 10.50% ↓ 10.00% - 11.00%

↓

12.00% - 14.00% ↓ 12.50% - 14.50% ↓

Minneapolis 6.75% - 7.50%

↓

8.25% - 9.00%

I

8.00% - 8.75%

↓

9.50% - 10.50%

I

9.00% - 10.00%

↓

11.00% - 12.00%

I

san Antonio 6.25% - 7.00%

↓

6.75% - 7.50%

↓

7.75% - 8.25%

↓

8.25% - 8.75%

↓

10.00% - 12.00%

↓

11.00% - 12.50%

↓

st. Louis 8.75% - 9.75%

↓

9.25% - 10.25%

↓

9.75% - 10.75%

↓

10.25% - 11.25%

↓

12.25% - 15.25% ↓ 15.25% - 20.00% ↓


CAP RATe FOReCAsT*Class A Class B Class C

stabilized Value Add stabilized Value Add stabilized Value AddAustin

Chicago

Cincinnati

Cleveland

Columbus

Dallas

Detroit

houston

Indianapolis

Kansas City

Minneapolis

san Antonio

st. Louis

Decrease

RemainFlat

Increase


In ThIs Issue:

Overview

Office

Multihousing

Retail

Industrial

hotel

Appendix


8


Overview

Office

Multihousing

Retail

Industrial

hotel

Appendix

Office CBD | Western Region


Albuquerque N/a N/a N/a N/a 8.50% - 8.75%

↓

N/a N/a N/a N/a N/a N/a

Denver 5.50% - 6.00%

↓

7.00%

↓

7.00%

↓

8.25% - 8.50%

↓

8.00% - 8.50%

↓

9.00%

↓

Las Vegas 6.00% - 7.00% N/a 7.00% - 8.00% N/a 6.50% - 7.50% N/a 7.50% - 8.50% N/a 8.00% - 10.00% N/a 9.00% - 12.00% N/a

Los Angeles 5.50% - 6.00%

↓

6.00% - 6.50%

↓

6.00% - 7.00%

↓

6.50% - 8.00%

↓

7.50% - 8.00%

↓

8.00% - 10.00%

I

Orange County 5.75% - 7.00%

↓

6.75% - 7.75%

↓

7.25% - 8.25%

↓

7.75% - 8.75%

↓

8.50% - 9.25%

↓

9.00% - 10.25%

↓

Phoenix 6.50% - 7.00%

↓

7.50% - 8.00%

↓

7.50% - 8.00%

↓

8.50% - 9.00%

↓

8.50% - 9.00%

↓

9.50% - 10.00%

↓

Portland 6.50% - 7.00%

↓

7.00% - 7.50%

↓

7.25% - 8.25%

↓

7.50% - 8.00%

↓

8.50% - 9.50%

I

7.50% - 10.00%

↓

sacramento 7.50% - 8.00%

I

9.00%

↓

8.00% - 8.50%

↓

9.00% - 9.50%

↓

8.50% - 9.00%

↓

10.00% - 11.00%

↓

salt Lake City 7.50% - 8.00%

↓

8.00% - 8.70%

↓

8.00% - 8.50%

↓

9.00% - 9.50%

↓

9.50% - 11.00% ↓ 10.00% - 13.00% ↓

san Diego 6.00% - 7.00%

↓

6.50% - 7.50%

↓

6.50% - 7.50%

↓

7.00% - 8.00%

↓

7.25% - 8.25%

I

7.75% - 8.75%

I

san Francisco 5.25% - 6.50%

↓

6.00% - 7.00%

↓

6.50% - 8.00%

↓

7.00% - 9.00%

↓

8.00% - 10.00% ↓ 9.00% - 11.00% ↓

seattle 5.00% - 5.50%

↓

6.00% - 7.00%

↓

6.50% - 7.00%

↓

7.00% - 8.00%

↓

8.50% - 9.00% N/a 9.50% - 10.00% N/a


Decrease

RemainFlat

Increase


stabilized Value Add stabilized Value Add stabilized Value AddAlbuquerqueDenverLas VegasLos AngelesOrange CountyPhoenixPortlandsacramentosalt Lake Citysan Diegosan Franciscoseattle


In ThIs Issue:

Overview

Office

Multihousing

Retail

Industrial

hotel

Appendix


9


Overview

Office

Multihousing

Retail

Industrial

hotel

Appendix

Office Suburban | eastern Region


Atlanta 7.30% - 7.50%

↓

8.50%

↓

8.25% - 9.00%

↓

9.00% - 10.00%

↓

10.00% - 12.00%

I

10.00 - 12.00%

↓

Baltimore 6.50% - 7.00%

↓

8.75% - 9.25%

I

8.00% - 8.50%

↓

9.75% - 10.25%

↓

9.50% - 10.00%

↓

10.50% - 11.00%

↓

Boston 6.50% - 7.50%

↓

7.50% - 8.50%

↓

7.50% - 8.50%

↓

8.00% - 9.00%

↓

9.00% - 10.00%

↓

10.00% - 12.00%

↓

Charlotte 7.50% - 8.00%

↓

8.00% - 8.50%

↓

8.00% - 8.50%

↓

8.75% - 9.25%

↓

9.50% - 10.00%

↓

10.00% - 10.50%

↓


↓

9.00% - 10.00%

↓

9.00% - 10.00%

↓

10.00% - 10.50%

↓

12.00% - 13.00% ↓ 12.00% - 13.00%

I

Miami 6.50% - 7.50%

↓

7.50% - 8.50%

↓

7.25% - 8.25%

↓

8.50% - 9.75%

↓

9.00% - 10.00%

I

10.00% - 12.00%

I

nashville 7.50% - 7.75%

I

8.50% - 8.75% ↓ 9.00% - 9.50% ↓ 9.50% - 9.75% I 10.00%

↓

10.00% - 10.50%

↓

Orlando 7.25% - 7.50%

↓

8.00% - 8.25%

↓

8.50% - 8.75%

↓

8.75% - 9.00%

↓

9.00% - 9.25%

↓

9.25% - 9.50%

↓


I

8.00% - 8.50%

I

9.50% - 10.00%

I

10.00% - 10.50%

I

10.50% - 11.00%

↓

11.00% - 12.00%

I

Pittsburgh 7.50% - 8.00% ↓ 8.00% - 8.50%

I

8.50% - 9.00%

↓

9.00% - 10.00%

↓

10.50% - 11.00%

↓

11.00% - 12.00%

↓

Raleigh 7.00% - 8.50%

↓

8.00% - 8.75%

↓

8.00% - 9.00%

↓

8.50% - 9.25%

↓

8.50% - 12.00% I 9.00% - 10.00%

↓

Tampa 7.00% - 8.00%

I

8.00% - 9.00%

I

8.00% - 9.00%

I

8.75% - 9.75%

I

9.25% - 10.25%

I

10.00% - 11.00%

I

Washington, DC 5.75% - 6.25%

↓

6.25% - 6.75%

↓

6.50% - 7.50%

↓

7.00% - 8.25%

↓

8.00% - 9.00% ↓ 8.25% - 9.25%

↓* Compared to 2nd Half 2010

CAP RATe FOReCAsT*


stabilized Value Add stabilized Value Add stabilized Value AddAtlantaBaltimoreBostonCharlotteJacksonvilleMiaminashvilleOrlandoPittsburghPhiladelphiaRaleighTampaWashington, DC

Decrease

RemainFlat

Increase


In ThIs Issue:

Overview

Office

Multihousing

Retail

Industrial

hotel

Appendix


10


Overview

Office

Multihousing

Retail

Industrial

hotel

Appendix

Office Suburban | Central Region


stabilized Value Add stabilized Value Add stabilized Value AddAustinChicagoCincinnatiClevelandColumbusDallasDetroit houstonIndianapolisKansas CityMinneapolissan Antoniost. Louis


Austin 6.25% - 7.75%

I

7.00% - 8.50%

I

7.75% - 8.50%

↓

8.00% - 9.00%

↓

8.50% - 10.00%

↓

9.00% - 10.00%

↓

Chicago 7.50% - 8.50%

I

8.50% - 10.00%

I

9.00% - 10.25%

I

10.00% - 11.00%

I

11.00% - 12.50%

I

12.50% - 14.00%

I


↓

8.50% - 9.00%

↓

9.00% - 10.00%

↓

9.50% - 10.50%

↓

10.00% - 11.50%

I

11.00% - 13.00%

I

Cleveland 8.75% - 9.00% N/a 9.25% - 9.50% N/a 9.50% - 10.00% N/a 9.75% - 10.00% N/a 10.50% - 11.00% N/a 11.00% N/a

Columbus 8.00% - 9.00%

↓

8.75% - 10.00%

↓

10.00% - 11.00%

I

10.00% - 11.00%

↓

11.00% - 12.00%

I

11.00% - 12.00%

I

Dallas 7.25% - 8.50%

↓

8.25% - 8.50%

↓

9.00% - 9.50%

↓

9.00% - 10.00%

↓

10.00% - 10.50%

I

10.0% - 11.00%

↓

Detroit 8.50% - 10.00%

I

9.00% - 11.00%

I

9.00% - 12.00%

I

10.00% - 14.00% ↓ 10.00% - 13.00%

I

12.00% - 15.00%

I

houston 6.25% - 7.00%

↓

7.50%

↓

8.00% - 8.50%

↓

9.00%

↓

9.50% - 10.00%

↓

9.50% - 12.00%

↓


↓

10.25% - 10.75% ↓ 9.50% - 10.00%

↓

11.75% - 12.25% ↓ N/a N/a N/a N/a


↓

9.00% - 10.00% ↓ 9.00% - 10.00% ↓ 9.50% - 11.00%

I

11.00% - 13.00% ↓ 12.00% - 14.00% ↓


↓

8.25% - 9.25%

↓

8.75% - 9.75%

I

10.00% - 11.00%

↓

9.50% - 10.50%

↓

11.50% - 12.50%

↓

san Antonio 6.50% - 7.25%

↓

6.75% - 7.50%

↓

7.75% - 8.25%

↓

8.25% - 8.75%

↓

10.00% -12.00%

↓

11.00% - 12.50%

↓

st. Louis 8.00% - 8.50%

↓

8.25% - 9.00%

↓

8.75% - 9.50%

↓

9.25% - 10.00%

↓

10.50% - 12.00%

↓

11.00% - 13.00%

↓


Decrease

RemainFlat

Increase


In ThIs Issue:

Overview

Office

Multihousing

Retail

Industrial

hotel

Appendix


11


Overview

Office

Multihousing

Retail

Industrial

hotel

Appendix

Office Suburban | Western Region


Albuquerque 7.00% - 7.25%

↓

N/a N/a N/a N/a 8.50% - 9.00%

I

N/a N/a 9.50 % - 10.50%

↓

Denver 6.50% - 7.00%

↓

7.75% - 8.00%

↓

8.00% - 8.50%

↓

9.00% - 9.50%

↓

9.00% - 10.00%

↓

10.50% - 11.00%

↓

Las Vegas 6.00% - 7.00%

↓

7.00% - 8.50%

↓

6.50% - 7.50%

↓

7.50% - 9.00%

↓

9.00% - 14.00%

I

N/a N/a


I

6.00% - 7.50%

I

6.50% - 7.50%

I

7.00% - 8.00%

I

7.50% - 9.00%

I

8.50% - 10.00% ↓


↓

7.00% - 8.00%

↓

7.50% - 8.50%

↓

8.00% - 9.00%

↓

8.75% - 9.50%

↓

9.25% - 10.50%

↓

Phoenix 7.50% - 8.00%

↓

8.50% - 9.00%

↓

8.00% - 8.50%

↓

9.00% - 9.50%

↓

9.50% - 10.00%

↓

10.50% - 11.00%

↓

Portland 7.75% - 8.50%

↓

8.00% - 8.75%

↓

8.75% - 9.50%

I

9.50% - 10.50% ↓ 9.00% - 10.00%

↓

9.50% - 12.00% ↓

sacramento 8.50% - 9.00% ↓ 9.00%

↓

9.00% - 9.50%

↓

10.00% - 10.50%

↓

10.00% - 10.50%

↓

11.00% - 11.50%

↓


↓

8.00% - 8.70%

↓

8.00% - 8.50%

↓

9.00% - 9.50% I 9.50% - 10.20% I 10.00% - 10.50%

I

san Diego 6.00% - 7.00%

↓

6.50% - 7.50%

↓

6.50% - 7.50%

↓

7.00% - 8.00%

↓

7.25% - 8.25%

I

7.75% - 8.75%

I


↓

6.50% - 7.50%

I

7.00% - 8.50% ↓ 7.50% - 9.50% ↓ 9.00% - 11.00% ↓ 9.50% - 12.00% ↓

seattle 5.50% - 6.25%

↓

6.00% - 7.60%

↓

6.50% - 7.50%

↓

7.00% - 8.00%

↓

7.50% - 9.00% N/a 8.50% - 9.50% N/a


Decrease

RemainFlat

Increase


stabilized Value Add stabilized Value Add stabilized Value AddAlbuquerqueDenverLas VegasLos AngelesOrange CountyPhoenixPortlandsacramentosalt Lake Citysan Diegosan Franciscoseattle


In ThIs Issue:

Overview

Office

Multihousing

Retail

Industrial

hotel

Appendix


12


Overview

Office

Multihousing

Retail

Industrial

hotel

Appendix

Multihousing | Overview

Acrossallsectorsofcommercialrealestateinvestment,multihousingistheclosesttothepreviouspeakleveloftransactionactivity.Thesectorhitapeakof$90billionintransactionactivityin2007withactivityoverthelastfourquarterscominginatjustunder$42billionaccordingtofiguresfromRealCapitalAnalytics.Moresothananyothersector,investorshaveboughtintotherecoverystorypresentedinthemultihousingsectorandespeciallytheshiftingattitudeofconsumerstorentinginsteadofowning.

Acrossmarkets,theCBRECapRateSurveypaintsapictureofhealthyinvestordemandacrossanumberofmarkets.Inthe39majormarketssurveyed,capratesforClassAstabilizedmultihousingassetscameinlowerthan5.5%in19ofthesemarkets.This5.5%levelisinterestingasthisisthelevelatwhichoureconomistsatCBREEconometricAdvisorsarethinkingthattheTenYearTreasurywillpeakoncetheeconomyisthroughthisturbulentpatch.TheselowlevelsrelativetotheTenYearTreasurydonotsuggestthattheseassetsareoverpricedsomuchastheyindicatetheinvestorexpectationsforfutureincomegrowthinthesemarkets.

Select from the list below to access the current multihousing cap rates and forecast.

Download a Complete Multihousing Current Cap Rates Chart (PDF)

Download a Complete Multihousing Cap Rate Forecast Chart (PDF)

http://marketing.cbre.com/IGMC/CapRate_Aug2011/1H 2011_CapRateTable_Multihousing_CapRate.pdf

http://marketing.cbre.com/IGMC/CapRate_Aug2011/1H 2011_CapRateTable_Multihousing_Forecast.pdf

In ThIs Issue:

Overview

Office

Multihousing

Retail

Industrial

hotel

Appendix


13


Overview

Office

Multihousing

Retail

Industrial

hotel

Appendix

Multihousing | eastern Region


Atlanta 4.85% - 5.75%

↓

5.25% - 6.10%

↓

5.85% - 6.85%

↓

6.10% - 7.25% ↓ 6.85% - 8.50%

I

7.50% - 10.00% ↓

Baltimore 4.75% - 5.75% ↓ N/a N/a 6.00% - 6.75% ↓ 6.00% - 7.00% ↓ 7.00% - 7.75%

I

7.50%

I

Boston 4.00% - 5.00%

I

N/a N/a 5.00% - 6.00%

↓

5.50% - 6.50%

↓

8.00% - 9.00% ↓ 8.00% - 9.00% ↓

Charlotte 4.75% - 5.00%

↓

5.00% - 5.75%

↓

6.00% - 6.75%

I

6.50% - 7.25% I 7.50% - 8.25% ↓ 8.00%

I


↓

5.25% - 6.00%

↓

6.25% - 7.00%

I

6.00% - 6.75% I 7.50% - 8.50% ↓ 7.00% - 8.00%

I

Miami* 4.75% - 5.75%

I

5.50% - 6.50% ↓ 5.50% - 6.50%

I

6.25% - 7.25% ↓ 7.00% - 8.50%

I

8.50% - 12.00% ↓

nashville 5.25% - 6.25%

I

5.50% - 6.50%

I

6.00% - 7.00%

↓

6.250% - 7.25% I 7.00% - 7.75%

↓

7.25% - 8.00% ↓


↓

4.00% - 4.50%

↓

4.25% - 5.25%

↓

4.25% - 5.00%

↓

5.75% - 6.75%

↓

5.50% - 6.50%

I

Orlando 5.25% - 5.75%

↓

5.50% - 6.00%

↓

5.75% - 6.25%

I

6.00% - 6.50%

I

6.50% - 7.00%

↓

7.00% - 7.50%

I


I

5.00% - 5.25%

I

6.25% - 6.75%

I

6.25% - 6.75%

I

7.00% - 7.50% I 7.00% - 7.50%

I


↓

7.00% - 7.50%

I

7.00% - 7.50%

↓

7.50% - 8.00%

I

7.75% - 8.25%

↓

8.00% - 8.50%

↓

Raleigh 4.50% - 5.75%

↓

N/a N/a 5.75% - 7.00%

I

5.50%

↓

7.50% - 9.50% ↓ 7.50%

I

Tampa 5.50% - 6.00%

I

5.25% - 5.75%

↓

6.25% - 6.50%

I

6.00% - 6.50%

I

7.00% - 8.50%

↓

7.00% - 8.50%

↓Washington, DC 4.25% - 5.25%

I

N/a N/a 5.75% - 6.25% ↓ 5.75% - 6.50% ↓ 6.50% - 7.25%↓

7.00%I



Decrease

RemainFlat

Increase

CAP RATe FOReCAsT*


stabilized Value Add stabilized Value Add stabilized Value Add

AtlantaBaltimoreBostonCharlotteJacksonvilleMiaminashvillenew York CityOrlandoPhiladelphiaPittsburghRaleighTampaWashington, DC

In ThIs Issue:

Overview

Office

Multihousing

Retail

Industrial

hotel

Appendix


14


Overview

Office

Multihousing

Retail

Industrial

hotel

Appendix

Multihousing | Central Region


stabilized Value Add stabilized Value Add stabilized Value AddAustinChicagoCincinnatiClevelandColumbusDallasDetroit

houstonIndianapolisKansas CityMinneapolissan Antoniost. Louis


Austin 4.75% - 5.25%

↓

4.50% - 5.00%

↓

6.25% - 6.75%

↓

6.25% - 6.75%

↓

6.75% - 7.25%

↓

6.75% -7.25%

↓

Chicago 4.50% - 5.25%

I

4.25% - 4.75%

↓

6.00% - 6.50% ↓ 5.75% - 6.25% I 7.00% - 7.25%

I

7.00% - 7.25%

↓


I

6.75% - 7.50% ↓ 7.00% - 8.00%

I

7.00% - 8.50% I 9.00% - 11.00% ↓ 9.50% - 12.00% ↓

Cleveland 7.75% - 8.00% N/a N/a N/a N/a N/a N/a N/a 10.44% - 11.50% N/a 13.25% - 14.00% N/a

Columbus 6.25% - 6.75%

↓

6.50% - 7.00%

↓

7.00% - 8.00%

↓

8.50% - 9.00% ↓ 9.50% - 10.50% ↓ 10.00% - 11.00% ↓

Dallas 5.00% - 6.00%

I

5.50% - 6.00% I 6.50% - 7.50%

↓

7.00% - 8.00% I 8.25%

↓

9.00%

I

Detroit 7.35% - 8.25%

↓

8.00% - 8.75%

↓

8.25% - 9.25%

↓

8.25% - 9.25%

↓

9.50% - 11.50%

↓

9.50% - 11.50%

↓

houston 5.00% - 6.00%

↓

5.00% - 6.00%

↓

6.50% - 7.50%

↓

7.00% - 7.50% I 8.00% - 9.00%

↓

8.00% - 9.50%

↓


I

5.75% - 6.50% I 6.75% - 7.25%

I

6.50% - 7.00% I 8.00% - 9.00%

I

8.00% - 10.00%

I


↓

5.50% - 6.25%

↓

7.00% - 7.50%

↓

6.50% - 7.00%

↓

8.00% - 10.00%

I

7.50% - 8.50%

↓


I

5.25% - 5.75%

↓

6.25% - 6.75%

↓

6.25% - 7.00%

↓

7.00% - 8.00%

↓

7.50% - 8.50%

↓

san Antonio 6.00% - 6.75% ↓ N/a N/a 7.00% - 7.25%

↓

7.50% - 8.00% ↓ 8.00%

↓

8.50% - 10.00% ↓

st. Louis 5.50% - 6.50%

↓

6.00% - 7.00%

↓

8.50% - 9.50% ↓ 8.50% - 9.50% ↓ 9.00% - 10.50%

I

10.00% - 15.00% ↓


Decrease

RemainFlat

Increase


In ThIs Issue:

Overview

Office

Multihousing

Retail

Industrial

hotel

Appendix


15


Overview

Office

Multihousing

Retail

Industrial

hotel

Appendix

Multihousing | Western Region


stabilized Value Add stabilized Value Add stabilized Value AddAlbuquerqueDenverInland empireLas VegasLos AngelesOrange CountyPhoenixPortlandsacramentosan Diegosan Franciscoseattle


Albuquerque 5.75% - 6.00%

↓

6.00% - 6.25%

↓

6.25% - 6.50%

↓

6.50% - 6.75%

I

7.25% - 7.75%

I

7.50% - 8.00% ↓

Denver 4.75% - 5.00%

↓

4.75% - 5.00%

↓

5.50% - 6.00%

↓

5.25% - 5.75%

↓

6.00% - 7.00%

↓

6.00% - 7.00%

↓

Inland empire 5.25% - 5.75% ↓ 5.00% - 5.50%

I

5.75% - 6.25%

↓

5.50% - 6.00% ↓ 6.50% - 7.25%

↓

6.50% - 7.25% ↓

Las Vegas 5.50% - 6.00%

↓

5.50% - 6.00%

↓

6.25% - 6.75%

↓

6.25% - 6.75%

↓

7.00% - 8.00%

↓

7.00% - 8.00%

↓


↓

3.75% - 4.25%

↓

4.25% - 4.75%

↓

4.25% - 4.75%

↓

4.75% - 5.50%

↓

4.75% - 5.50%

↓


↓

4.00% - 4.50%

↓

5.25% - 5.50%

I

5.00% - 5.50% I 5.50% - 6.00%

↓

5.25% - 6.00%

↓

Phoenix 4.50% - 5.25%

I

4.50% - 5.25%

↓

5.50% - 6.00%

I

5.50% - 6.00% I 6.00% - 7.00% I 6.00% - 7.00%

I

Portland 4.75% - 5.25%

I

5.00% - 5.50%

I

5.50% - 6.00%

I

5.50% - 6.00%

↓

6.25% - 6.75%

I

6.25% - 6.75%

↓


↓

5.75% - 6.25%

↓

6.00% - 6.50%

↓

6.25% - 6.75%

↓

N/a N/a N/a N/a

san Diego 4.25% - 4.75%

I

4.00% - 4.50%

I

5.25% - 5.75% ↓ 5.00% - 5.50% ↓ 5.50% - 6.00%

I

5.00% - 6.00%

↓


↓

4.50% - 5.00%

↓

5.00% - 5.50% ↓ 5.50% - 6.00% ↓ 5.50% - 6.00%

↓

6.00% - 6.50%

↓

seattle 4.00% - 4.50%

↓

4.25% - 4.75%

↓

5.00% - 6.00%

↓

5.25% - 6.00%

↓

6.00% - 6.50%

↓

6.00% - 6.50%

↓


Decrease

RemainFlat

Increase


In ThIs Issue:

Overview

Office

Multihousing

Retail

Industrial

hotel

Appendix


16


Overview

Office

Multihousing

Retail

Industrial

hotel

Appendix

Retail | Overview

Theretailsectorhadbeenthelaggardintotheearlystagesoftherecoverywithinvestorinterestinthissectorcomparativelymutedinto2010withalowpaceofinvestmentactivityearlyintheyear.Withabitofareboundinretailsalesandanendintheerosiontoproperty-levelperformance,theinvestmentactivityinthesectorhasreboundedstronglyintothefirsthalfof2011.Atjustover$17billion,totalinvestmentactivityisupjustover190%fromayearearlieraccordingtofiguresfromRealCapitalAnalytics,thestrongestturnaroundforallsectorsofcommercialrealestateCBREhassurveyedforthisreport.

Acrossmarkets,theCBRECapRateSurveyshowsafairlyconsistentstorywithregardstothepricingofgroceryanchoredshoppingcentersversusthePowerCenterformat.WhetherinvestorsareactiveintheClassA,BorCsegmentsofthemarket,PowerCentercapratesarecominginhigherthantheirgrocery-anchoredequivalents.Regardlessofassetclass,investorsseelessriskofongoingshockstogroceryrelatedretailandarewillingtopaypremiumsfortheseassets.

Select from the list below to access the current retail cap rates and forecast.

Download a Complete Retail Current Cap Rates Chart (PDF)

Download a Complete Retail Cap Rate Forecast Chart (PDF)

http://marketing.cbre.com/IGMC/CapRate_Aug2011/1H 2011_CapRateTable_Retail_CapRate.pdf

http://marketing.cbre.com/IGMC/CapRate_Aug2011/1H 2011_CapRateTable_Retail_Forecast.pdf

In ThIs Issue:

Overview

Office

Multihousing

Retail

Industrial

hotel

Appendix


17


Overview

Office

Multihousing

Retail

Industrial

hotel

Appendix

Retail | eastern Region

CAP RATe FOReCAsT*

Class A Class B Class Cneighborhood/

Community (Grocery Anchored)

Power Centers

neighborhood/ Community

(Grocery Anchored)Power Centers



AtlantaBaltimore

BostonCharlotteJacksonvilleMiamiOrlandoPhiladelphiaRaleighTampaWashington, DC


Community (Grocery

Anchored) Trend*Power

Centers Trend*


(Grocery Anchored) Trend*

Power Centers Trend*




Atlanta 6.00% - 7.00%

I

7.00% - 7.50%

↓

7.00% - 8.00%

↓

7.50% - 8.50%

↓

8.00% - 10.00%

↓

8.50% - 12.00%

I

Baltimore 5.75% - 6.50%

↓

6.25% - 6.75%

↓

8.00% - 8.50%

↓

8.00% - 8.75%

↓

9.00% - 10.00%

↓

9.25% - 10.25%

↓

Boston 5.75% - 6.75%

↓

6.75% - 7.25%

I

7.25% - 8.00%

I

7.50% - 8.00%

↓

8.75% - 9.50%

I

9.50% - 10.50%

I

Charlotte 6.50% - 7.00%

↓

7.00% - 7.50%

↓

7.50% - 8.50%

I

8.00% - 8.50%

↓

9.00% - 10.00%

↓

9.50% - 10.00%

↓


I

7.00% - 7.50%

I

7.25% - 7.75%

I

7.50% - 8.25%

I

8.00% - 11.00%

I

8.00% - 11.00%

I

Miami 6.25% - 6.75%

I

6.75% - 7.25%

I

6.75% - 7.25%

I

7.25% - 8.00%

I

8.00% - 11.00%

I

8.00% - 11.00%

I

Orlando 6.50% - 7.00% I 7.00% - 7.50% I 7.25% - 7.75% I 7.50% - 8.25% I 8.00% - 11.00%

I

8.00% - 11.00%

I


I

7.50% - 8.00%

I

8.25% - 9.25%

I

9.50% - 10.25%

I

9.50% - 10.50%

I

10.00% - 10.75%

I

Raleigh 6.50% - 7.00%

↓

7.00% - 7.50%

↓

7.50% - 8.50%

I

8.00% - 8.50%

↓

9.00% - 10.00%

↓

9.50% - 10.00%

↓

Tampa 6.50% - 7.00%

I

7.00% - 7.50%

I

7.25% - 7.75%

I

7.50% - 8.25%

I

8.00% - 11.00%

I

8.00% - 11.00%

I

Washington, DC 5.50% - 6.25%↓

6.00% - 6.50%↓

7.50% - 8.00%I

7.50% - 8.25%↓

9.00% - 10.00%↓

9.25% - 10.25%↓


Decrease

RemainFlat

Increase


In ThIs Issue:

Overview

Office

Multihousing

Retail

Industrial

hotel

Appendix


18


Overview

Office

Multihousing

Retail

Industrial

hotel

Appendix

Retail | Central Region








AustinChicagoCincinnatiClevelandColumbusDallasDetroithoustonIndianapolisKansas CityMinneapolissan Antoniost. Louis


Community (Grocery


Centers Trend*







Austin 6.00% - 7.25% N/a 6.75% - 7.75% N/a 8.00% - 9.25% N/a 8.25% - 9.50% N/a 9.25% - 10.25% N/a 10.25% - 11.50% N/a

Chicago 6.25% - 6.75%

↓

6.75% - 7.25%

↓

7.50% - 8.00%

↓

8.00% - 8.50%

I

9.00% - 10.00%

I

9.50% - 11.00%

I


↓

7.25% - 7.75%

↓

8.00% - 8.50%

↓

8.50% - 9.00%

↓

9.50% - 10.50%

↓

10.00% - 11.00%

↓

Cleveland 7.00% - 7.50% N/a 7.50% - 8.00% N/a 8.25% - 8.75% N/a 8.75% - 9.25% N/a 10.00% - 11.00% N/a 10.00% - 12.00% N/a

Columbus 6.75% - 7.25% N/a 7.25% - 7.75% N/a 8.00% - 8.50% N/a 8.50% - 9.00% N/a 9.50% - 10.50% N/a 10.00% - 11.00% N/a

Dallas 6.00% - 7.00%

↓

6.50% - 7.25%

↓

7.00% - 8.00%

↓

7.50% - 8.50%

↓

9.00% - 10.00%

I

9.50% - 11.00%

I

Detroit 7.50% - 8.00%

↓

8.00% - 8.50%

↓

8.50% - 9.00%

↓

9.00% - 9.50%

↓

10.50% - 12.00%

I

11.00% - 13.00% ↓

houston 6.00% - 7.00%

↓

6.50% - 7.25%

↓

7.25% - 8.00%

↓

7.50% - 8.50%

↓

9.00% - 10.00%

I

9.50% - 11.00%

I


↓

7.25% - 7.75%

↓

8.00% - 8.50%

↓

8.50% - 9.00%

↓

9.50% - 10.50%

↓

10.00% - 11.00%

↓

Kansas City 6.75% - 7.25% N/a 7.25% - 7.75% N/a 8.00% - 8.50% N/a 8.50% - 9.00% N/a 9.50% - 10.50% N/a 10.00% - 11.00% N/a


↓

6.75% - 7.25%

↓

7.50% - 8.00%

↓

8.00% - 8.50%

I

9.00% - 10.00%

I

9.50% - 11.00%

Isan Antonio 6.00% - 7.25%

↓

7.00% - 7.75%I

7.50% - 8.50%↓

7.75% - 9.00%I

9.25% - 10.25%↓

10.25% - 11.50%I

st. Louis 6.75% - 7.25%

↓

7.25% - 7.75%

↓

8.00% - 8.50%

↓

8.50% - 9.00%

↓

9.50% - 10.50%

↓

10.00% - 11.00%

↓


Decrease

RemainFlat

Increase


In ThIs Issue:

Overview

Office

Multihousing

Retail

Industrial

hotel

Appendix


19


Overview

Office

Multihousing

Retail

Industrial

hotel

Appendix

Retail | Western Region








AlbuquerqueDenverLas VegasLos AngelesOrange CountyPhoenixPortlandsacramentosalt Lake Citysan Diegosan Franciscoseattle

Decrease

RemainFlat

Increase


Community (Grocery


Centers Trend*







Albuquerque 6.50% - 7.00% N/a 7.00% - 8.00% N/a 7.50% - 9.00% N/a 8.00% - 10.00% N/a 8.00% - 11.00% N/a 10.00% - 12.00% N/a

Denver 6.50% - 6.75% N/a 6.80% - 7.00% N/a 7.75% - 8.25% N/a 8.00% - 8.75% N/a 9.00% - 10.00% N/a 9.00% - 10.00% N/a

Las Vegas 6.50% - 7.00%

↓

7.00% - 8.00%

↓

7.50% - 9.00%

I

8.00% - 10.00%

I

8.00% - 11.00%

↓

10.00% - 12.00%

↓


↓

5.75% - 6.50%

↓

6.75% - 7.50%

↓

7.00% - 8.00%

↓

7.00% - 8.50%

↓

8.50% - 9.50%

↓


↓

5.75% - 6.50%

↓

6.75% - 7.50%

↓

7.00% - 8.00%

↓

7.00% - 8.50%

↓

8.50% - 9.50%

↓

Phoenix 6.25% - 7.00%

↓

6.75% - 7.50%

↓

7.50% - 8.50%

↓

8.00% - 9.50%

↓

9.00% - 11.50%

↓

10.00% - 12.00%

↓

Portland 5.75% - 6.50%

↓

6.25% - 7.00%

I

7.00% - 8.00%

↓

7.25% - 8.50%

↓

8.00% - 9.50%

↓

9.50% - 10.50%

↓


↓

6.75% - 7.50%

I

7.00% - 8.50%

↓

7.75% - 9.00%

I

8.00% - 11.00%

↓

10.00% - 12.00%

↓

salt Lake City 6.50% - 7.00% N/a 7.00% - 8.00% N/a 7.50% - 9.00% N/a 8.00% - 10.00% N/a 8.00% - 11.00% N/a 10.00% - 12.00% N/a

san Diego 4.75% - 5.75%

↓

5.75% - 6.50%

↓

6.75% - 7.50%

↓

7.00% - 8.00%

↓

7.00% - 8.50%

↓

8.50% - 9.50%

↓


↓

5.75% - 6.50%

↓

6.75% - 7.50%

↓

7.00% - 8.00%

↓

7.00% - 8.50%

↓

8.50% - 9.50%

↓seattle 5.75% - 6.50%

↓

6.25% - 7.00%I

7.00% - 7.50%↓

7.25% - 8.50%↓

8.00% - 9.50%↓

9.50% - 10.50%↓



In ThIs Issue:

Overview

Office

Multihousing

Retail

Industrial

hotel

Appendix


20


Overview

Office

Multihousing

Retail

Industrial

hotel

Appendix

Industrial | Overview

Inthefirsthalfof2011,transactionactivityintheindustrialsectorwasup43%fromayearearlieraccordingtofiguresfromRealCapitalAnalytics.Remarkably,thispaceofgrowthistheslowestacrossallsectorsofcommercialproperty.Theindustrialsectorwasalsobringinguptheyearatthistimelastyear.Totaltransactionactivityisstillroughlyonlyathirdthelevelhitatthepeakin2007whileothersectorssuchasmultihousingandretailarenowatlevelsroughlyhalfofthatseenin2007.Theselevelsarenotreflectiveofalackofinvestorinterestinthesector,insteadreflectinganarrowingoninteresttowardsparticulartypesofindustrialassets;moderndistributionassetssuitableformodernlogisticssupport.

Thismovetowardsinvestordemandformoderndistributionassetscanbeseeninrelativepricingacrossmarkets.ThereareahandfulofmarketswherethesetypesofassetsareclusteredwithmarketslikeDallas,Chicago,NewYork/NewJerseyandLosAngeles(InlandEmpire)showingcapratesbelow7%forthehighestqualityassetsinthefirsthalfof2011accordingtotheCBRECapRateSurvey.Bycontrast,majormanufacturingmarketsintheMidwestthatstillfaceeconomicstrugglessawcapratesforclassAassetsinexcessof8%.

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)

http://marketing.cbre.com/IGMC/CapRate_Aug2011/1H 2011_CapRateTable_Industrial_CapRate.pdf

http://marketing.cbre.com/IGMC/CapRate_Aug2011/1H 2011_CapRateTable_Industrial_Forecast.pdf

In ThIs Issue:

Overview

Office

Multihousing

Retail

Industrial

hotel

Appendix


21


Overview

Office

Multihousing

Retail

Industrial

hotel

Appendix

Industrial | eastern Region


stabilized Trend* Value Add Trend* stabilized Trend* Value Add Trend* stabilized Trend* Value Add Trend*

Atlanta 6.50% - 7.00%

↓

7.00% - 7.50%

↓

7.50% - 8.00%

↓

8.00% - 8.50%

↓

9.00% - 10.00%

↓

9.00% - 9.50%

↓

Baltimore 6.75% - 7.25%

↓

7.75% - 8.25% I 7.50% - 8.25%

↓

8.75% - 9.50% ↓ 8.75% - 9.75% I 9.75% - 10.75% I

Boston 6.50% - 7.00%

↓

7.00% - 8.00%

↓

8.00% - 9.00%

↓

8.50% - 9.50%

↓

9.00% - 10.00%

↓

10.00% - 12.00%

↓

Charlotte 7.00% - 7.50%

↓

7.50% - 8.00%

↓

8.00% - 8.50%

↓

8.75% - 9.25%

↓

9.00% - 10.00%

↓

9.50% - 10.50%

↓


↓

8.50% - 9.00%

↓

9.50% - 10.00% ↓ 10.00% - 11.00% ↓ 12.00% - 13.00% ↓ 12.00% - 13.00% ↓

Miami 5.75% - 6.25%

↓

6.25% - 7.00%

↓

6.25% - 7.00%

↓

7.00% - 8.00%

↓

7.00% - 8.00%

↓

8.00% - 9.50%

↓

nashville 7.75% - 8.25%

↓

8.25% - 8.50% I 8.75% - 9.50% ↓ 9.50% - 10.00% ↓ 9.50% - 10.00% ↓ 10.00%

↓

new York/northern nJ** 6.00% - 7.00%

↓

7.00% - 8.00%

↓

7.00% - 7.75%

↓

8.00% - 8.75%

↓

8.50% - 9.50%

↓

9.50% - 10.50%

↓

Orlando 7.50% - 8.00%

↓

8.50% - 9.00%

↓

8.00% - 8.75%

↓

10.00%

↓

9.00% - 9.75%

↓

11.00% - 12.00%

↓

Philadelphia 7.00% - 7.50% I 8.00% - 8.50%

↓

7.75% - 8.50%

↓

9.00% - 9.75%

↓

9.00% - 10.00%

↓

10.00% - 11.00%

↓


↓

8.00% - 8.50%

↓

8.50% - 9.00%

↓

9.00% - 9.50%

↓

10.00% - 10.50%

↓

10.50% - 11.00%

↓

Raleigh 6.50% - 8.25%

↓

7.50%

↓

7.50% - 9.00%

↓

8.00%

↓

N/a N/a N/a N/a

Tampa 6.50% - 7.25%

↓

7.00% - 7.50%

↓

7.25% - 8.00%

↓

8.00% - 8.50%

↓

9.00% - 9.50%

↓

9.00% - 10.00%

↓Washington, DC 6.00% - 6.50% N/a 6.50% - 7.00% N/a 7.25% - 7.50% N/a 8.00% - 8.50% N/a 8.50% - 9.00% N/a 9.50% - 10.00% N/a

* Compared to 2nd half 2010 ** Compared to 2nd half 2010 New Jersey (central/north)

Decrease

RemainFlat

Increase




AtlantaBaltimoreBostonCharlotteJacksonvilleMiaminashvilleOrlandoPhiladelphiaPittsburghRaleigh N/a N/aTampaWashington, DC

In ThIs Issue:

Overview

Office

Multihousing

Retail

Industrial

hotel

Appendix


22


Overview

Office

Multihousing

Retail

Industrial

hotel

Appendix

Industrial | Central Region


stabilized Trend* Value Add Trend* stabilized Trend* Value Add Trend* stabilized Trend* Value Add Trend*

Austin 7.25% - 8.25% I 8.00% - 8.75%

↓

7.75% - 8.75%

↓

8.50% - 9.25%

↓

8.50% - 9.50%

↓

8.75% - 10.00%

↓

Chicago 6.50% - 6.75% I 6.75% - 7.00%

↓

7.00% - 7.50%

↓

7.50% - 8.00%

↓

9.00% - 9.50%

↓

10.00% - 11.00%

I


↓

8.00% - 9.00%

↓

8.00% - 9.00%

↓

9.00% - 10.00%

I

10.00% - 12.00% ↓ 10.50% - 12.50%

↓

Cleveland 8.00% - 8.50% N/a 8.50% - 9.00% N/a 9.50% - 10.00% N/a 9.50% - 10.00% N/a 8.75% - 9.25% N/a 11.50% - 12.00% N/a

Columbus 7.25% - 8.00%

↓

9.00% - 10.00%

↓

9.00% - 11.00%

↓

10.00% - 12.00%

I

12.00% - 13.00%

I

12.00% - 13.00%

I

Dallas 6.25% - 7.25%

I

7.00% - 8.00%

↓

7.00% - 8.00%

↓

8.00% - 9.25%

↓

8.00% - 9.50%

↓

9.00% - 11.00%

I

Detroit 8.00% - 8.25%

↓

N/a N/a N/a N/a N/a N/a N/a N/a N/a N/a

houston 6.75% - 7.50%

↓

7.50% - 8.50%

↓

8.00% - 9.00%

↓

8.50% - 9.50%

↓

9.00% - 10.50%

↓

10.00% - 15.00%

I

Indianapolis 7.50%

↓

8.50%

↓

9.00%

↓

10.00%

↓

10.50%

↓

11.00%

↓


↓

7.50% - 7.75%

↓

8.00% - 8.50%

I

8.50% - 8.75%

I

9.00% - 10.00%

I

10.00% - 11.00%

↓


↓

8.00% - 8.75%

↓

7.75% - 8.50%

↓

9.25% - 10.00% ↓ 9.00% - 10.00%

↓

11.00% - 12.00% ↓

san Antonio 7.25% - 7.75% N/a 7.75% - 8.25% N/a 7.75% - 8.25% N/a 8.50 - 8.75% N/a 9.25% - 10.00% N/a 11.00% - 12.00% N/a

st. Louis 7.75% - 8.25%

↓

8.25% - 9.00%

↓

8.25% - 9.00%

↓

9.00% - 9.75%

↓

10.00% - 11.00%

↓

11.00% - 15.00% I

Decrease

RemainFlat

Increase

CAP RATe FOReCAsT*



AustinChicagoCincinnatiClevelandColumbusDallasDetroithoustonIndianapolisKansas CityMinneapolissan Antoniost. Louis



In ThIs Issue:

Overview

Office

Multihousing

Retail

Industrial

hotel

Appendix


23


Overview

Office

Multihousing

Retail

Industrial

hotel

Appendix

Industrial | Western Region

CAP RATe FOReCAsT*


stabilized Value Add stabilized Value Add stabilized Value AddAlbuquerqueDenver N/a N/a N/a

Las VegasLos AngelesOrange CountyPhoenixPortlandsacramentosalt Lake Citysan Diegosan Franciscoseattle


Albuquerque N/a N/a N/a N/a 9.00% - 10.00% N/a N/a N/a 9.50% - 10.00% N/a N/a N/a

Denver 7.00% - 7.50%

↓

7.50% - 8.25%

↓

8.00% - 8.50%

↓

8.25% - 8.75%

↓

8.75% - 9.50%

↓

9.00% - 10.00%

↓

Las Vegas 6.00% - 8.00%

↓

7.50% - 9.50%

I

6.50% - 8.50%

↓

8.00% - 10.00%

↓

9.00% - 12.00%

↓

9.00% - 12.00%

↓


↓

5.25% - 6.25%

↓

6.50% - 7.00%

↓

6.50% - 7.50%

↓

7.25% - 8.25%

↓

8.00% - 8.50%

↓


↓

5.75% - 6.75%

↓

6.00% - 7.00%

↓

6.50% - 7.25%

↓

7.00% - 8.00%

↓

7.50% - 8.50%

↓

Phoenix 6.50% - 7.00%

↓

7.00% - 7.50%

↓

7.00% - 7.50%

↓

7.50% - 8.00%

↓

9.00% - 10.00%

↓

10.00% - 12.00%

I

Portland 7.25% - 8.00%

↓

7.50% - 9.00%

↓

7.75% - 8.25%

↓

8.00% - 10.00%

↓

8.50% - 9.50%

↓

8.50% - 10.50%

↓

sacramento 7.50%

↓

9.00%

↓

8.50%

↓

9.50%

↓

9.00%

↓

11.00%

↓


↓

8.00% - 8.50%

↓

8.00% - 8.50%

↓

8.50% - 9.00%

I

9.00% - 9.50%

I

10.00%

I

san Diego 6.00% - 6.50%

↓

6.50% - 7.00%

↓

6.50% - 7.00%

↓

7.00% - 7.50%

↓

7.50% - 8.00%

I

8.00% - 8.50%

I


↓

6.00% - 7.00%

↓

6.25% - 7.50%

↓

7.00% - 8.50%

↓

8.00% - 10.00% ↓ 8.50% - 11.00%

↓

seattle 6.25% - 7.00%

↓

6.75% - 7.25%

↓

6.50% - 7.25%

↓

7.75% - 8.25%

I

7.75% - 8.25%

I

8.25% - 9.00%

↓Decrease

RemainFlat

Increase



In ThIs Issue:

Overview

Office

Multihousing

Retail

Industrial

hotel

Appendix


24


Overview

Office

Multihousing

Retail

Industrial

hotel

Appendix

Hotels | Overview

TheCBRECapRateSurveyprovidesinformationontheHotelsectorthatisnotreallyavailableelsewhere.Withtotaltransactionactivityinthesectorrepresentingroughly9%ofannualactivityacrossallcommercialpropertysectors,theresimplyoftenarenotenoughtransactionstodevelopreliablebenchmarksofsalescomparables.

Still,transactionactivityhasgrownquicklyin2011.Comparedtothepaceofactivityseeninthefirsthalfof2010,salesvolumewasup147%inthefirsthalfof2011asthefundamentaldriverofhotelroomdemandwasrising.Whilefearsofadouble-diprecessionhavebecomemorepresentintothe3rdquarterof2011,inthefirsthalfoftheyearthepaceofbusinessinvestmentwasrisingandbusinesstravelwasgrowing.

Themarketswhereinvestorsarelikelytofacethelowestgoing-incapratestodayarethosemajorcentersofbusinessactivitywhicharealsoattractivetoinvestorsintheofficesector.StabilizedhotelcapratesarelowestinmarketslikeNewYork,Boston,SanFranciscoandSeattlewithcapratelevelslowerthan6%fortheluxurysegment.

Select from the list below to access the current hotels cap rates and forecast.

Download a Complete hotels Current Cap Rates Chart (PDF)

Download a Complete hotels Cap Rate Forecast Chart (PDF)

http://marketing.cbre.com/IGMC/CapRate_Aug2011/1H 2011_CapRateTable_Hotels_CapRate.pdf

http://marketing.cbre.com/IGMC/CapRate_Aug2011/1H 2011_CapRateTable_Hotels_Forecast.pdf

In ThIs Issue:

Overview

Office

Multihousing

Retail

Industrial

hotel

Appendix


25


Overview

Office

Multihousing

Retail

Industrial

hotel

Appendix

Hotels | National

Luxury Full servicestabilized Trend* Value Add** Trend* stabilized Trend* Value Add** Trend*

Albuquerque 8.00% - 8.50% N/A 8.25% - 8.75% N/A 8.25% - 8.75% N/A 9.25% - 9.75% N/A

Atlanta 7.00% - 7.50% ↓ 7.50% - 8.00% ↓ 7.50% - 8.00% I 8.00% - 8.50% I

Austin 7.00% - 8.00% N/A 7.50% - 8.50% N/A 8.50% - 9.00% N/A 9.00% - 9.50% N/A

Baltimore 7.75% - 8.75% ↓ 8.25% - 9.25% I 8.00% - 9.00% ↓ 8.50% - 9.50% I

Boston 4.00% - 5.00%

↓

N/a N/A 6.00% - 7.00% I 6.50% - 7.50% ↓

Charlotte 8.00% - 9.00% N/A 8.50% - 9.50% N/A 8.50% - 9.50% N/A 9.00% - 10.00% N/A

Chicago 7.50% - 8.50% ↓ 7.75% - 8.75% ↓ 8.00% - 9.00% ↓ 8.25% - 9.25% I

Columbus N/a N/A N/a N/A 9.00% - 10.00% N/A 9.50% - 10.50% N/A

Dallas 7.00% - 7.50%

↓

7.25% - 7.75%

↓

9.50% - 10.00% ↓ 9.75% - 10.25% I

Denver 7.00% - 7.50% I 7.25% - 7.75% I 7.25% - 7.75%

↓

8.25% - 8.75% I

Jacksonville 8.50% - 9.00% N/A 9.25% - 10.00% N/A 9.00% - 9.50% N/A 9.75% - 10.50% N/A

Kansas City 7.50% - 9.00% N/A 10.00% - 13.00% N/A 8.50% - 11.00% N/A 12.00% N/A

Las Vegas N/a N/A N/a N/A 7.00% - 8.00%

↓

9.00% N/A

Los Angeles 6.00% - 8.50% I 7.00% - 9.00% ↓ 7.00% - 9.00% ↓ 7.00% - 10.00% ↓

Miami 7.50% - 8.50% ↓ 9.00% - 10.00% ↓ 8.50% - 9.50% ↓ 9.50% - 10.50% ↓


↓

10.00% ↓ 6.00% - 6.75%

↓

10.00% ↓

Orange County 6.00% - 8.50% I 7.00% - 9.00% ↓ 7.00% - 9.00% ↓ 7.00% - 10.00% I

Orlando 8.00% - 9.00% ↓ 8.50% - 10.00% ↓ 8.50% - 9.50% I 9.00% - 10.50% ↓

Philadelphia 6.50% - 7.50% N/A 10.00% N/A 8.00% - 9.00% N/A 10.00% N/APhoenix 5.50% - 7.00% N/A 7.00% - 8.00% N/A 7.50% - 8.00% N/A 8.25% - 9.00% N/APittsburgh N/a N/A 8.00% - 11.00% N/A 9.00% 11.00% N/A 9.50% - 11.50% N/APortland 6.50% - 7.50% N/A 6.75% - 8.00% N/A 6.50% - 7.50% N/A 7.00% - 8.50% N/ARaleigh 8.50% - 9.50% N/A 9.00% - 10.00% N/A 9.00% - 10.00% N/A 9.50% - 10.50% N/Asan Antonio 7.00% - 8.00% N/A 7.00% - 9.00% N/A 8.00% - 9.00% N/A 8.00% - 10.00% N/A

san Diego 6.00% - 8.50%

↓

7.00% - 9.00% I 7.00% - 9.00% ↓ 7.00% - 10.00% N/A

san Francisco 5.00% - 6.00% ↓ 8.00% - 10.00% ↓ 6.00% - 7.00%

↓

8.00% - 10.00% ↓

seattle 5.00% - 6.00%

↓

6.00% - 7.00%

↓

5.50% - 6.50%

↓

5.50% - 7.00%

↓

st. Louis 7.50% - 9.00% N/A 10.00% - 13.00% N/A 8.50% - 11.00% N/A 12.00% N/A

Washington, DC 7.00% - 8.00% ↓ 7.25% - 8.25% ↓ 7.50% - 8.50% ↓ 7.75% - 8.75% ↓

* Compared to 2nd Half 2010** value-add cap rates are based on a year 3 stabilized NOI divided by total cost

In ThIs Issue:

Overview

Office

Multihousing

Retail

Industrial

hotel

Appendix


26


Overview

Office

Multihousing

Retail

Industrial

hotel

Appendix

Hotels | National

select service economystabilized Trend* Value Add** Trend* stabilized Trend* Value Add** Trend*

Albuquerque 8.50% - 9.00% N/A 9.00% - 9.50% N/A 10.50% - 11.00% N/A 11.50% - 11.75% N/A

Atlanta 8.00% - 8.50% I 8.50% - 9.00%

↓

9.00% - 10.00% I 10.00% - 12.00% ↓

Austin 8.75% - 9.25% N/A 9.00% - 9.50% N/A 9.00% - 10.00% N/A 9.00% - 10.00% N/A

Baltimore 8.25% - 9.25% ↓ 8.75% - 9.75% I 10.75% I 11.25% I

Boston 6.00% - 7.00% N/A 6.50% - 7.50% N/A 7.00% - 8.00% N/A 8.00% - 9.00% N/ACharlotte 9.00% - 10.00% N/A 9.50% - 10.50% N/A 10.50% N/A 12.00% - 13.00% N/A

Chicago 8.00% - 9.00% I 8.25% - 9.25%

↓

N/a N/A N/a N/A

Columbus 9.00% - 10.00% N/A 9.50% - 10.50% N/A 10.50% - 12.00% N/A 11.00% - 12.50% N/A

Dallas 8.50% - 9.00%

↓

9.00% - 9.50%

↓

10.00% - 10.50%

↓

10.50% - 11.50% I

Denver 7.50% - 8.00% I 8.00% - 8.50% ↓ 9.50% - 10.00% ↓ 10.50% - 10.75% I

Jacksonville 9.50% - 10.00% N/A 9.75% - 11.00% N/A 10.00% - 10.50% N/A 11.00% - 12.00% N/A

Kansas City 8.50% - 11.00% N/A 12.00% N/A 10.00% - 12.00% N/A 15.00% N/A

Las Vegas N/a N/A N/a N/A N/a N/A N/a N/A

Los Angeles 7.00% - 9.00% ↓ 7.00% - 10.00% ↓ 8.00% - 10.00% I 9.50% - 11.50% I

Miami 9.00% - 10.00% ↓ 9.50% - 11.00% ↓ 9.50% - 10.50% ↓ 10.00% - 12.00% ↓


↓

10.00% ↓ 8.00% - 9.00%

↓

10.00% ↓

Orange County 7.00% - 9.00% ↓ 7.00% - 10.00% I 8.00% - 10.00% I 9.50% - 11.50%

↓

Orlando 9.00% - 10.00% I 9.50% - 11.00% ↓ 9.50% - 10.50% I 10.00% - 12.00% I

Philadelphia 7.50% - 8.50% N/A 10.00% N/A 9.00% - 10.00% N/A 10.00% N/APhoenix 8.00% - 9.50% N/A 9.50% - 10.50% N/A 10.00% - 11.00% N/A 10.00% - 13.00% N/APittsburgh 10.00% - 14.00% N/A 11.00% - 14.00% N/A 12.00% - 15.00% N/A N/a N/APortland 8.00% - 9.00% N/A 8.50% - 10.00% N/A 9.75% - 11.50% N/A 10.50% - 12.50% N/ARaleigh 9.50% - 10.50% N/A 10.00% - 11.00% N/A 11.00% N/A 12.50% - 13.50% N/Asan Antonio 8.00% - 9.00% N/A 8.00% - 10.00% N/A 9.50% - 11.00% N/A 10.00% - 13.00% N/A

san Diego 7.00% - 9.00% I 7.00% - 10.00% I 8.00% - 10.00% I 9.50% - 11.50% ↓

san Francisco 7.00% - 9.00% ↓ N/a N/A 8.00% - 10.00% I N/a N/A

seattle 6.25% - 7.25%

↓

6.50% - 7.50%

↓

9.50% - 10.50%

↓

11.00% - 13.00% I

st. Louis 8.50% - 11.00% N/A 12.00% N/A 10.00% - 12.00% N/A 15.00% N/A

Washington, DC 7.50% - 8.50% ↓ 7.75% - 8.75% I 10.00% I 10.25% I

* Compared to 2nd Half 2010** value-add cap rates are based on a year 3 stabilized NOI divided by total cost

In ThIs Issue:

Overview

Office

Multihousing

Retail

Industrial

hotel

Appendix


27


Overview

Office

Multihousing

Retail

Industrial

hotel

Appendix

Hotels | National

Luxury Full service select service economy

stabilized Value Add stabilized Value Add stabilized Value Add stabilized Value AddAlbuquerqueAtlantaAustinBaltimoreBostonCharlotteChicagoColumbusDallasDenverJacksonvilleKansas CityLas VegasLos AngelesMiaminew York CityOrange CountyOrlandoPhiladelphiaPhoenixPittsburghPortlandRaleighsan Antoniosan Diegosan Franciscoseattlest. LouisWashington, DC

Decrease

RemainFlat

Increase


In ThIs Issue:

Overview

Office

Multihousing

Retail

Industrial

hotel

Appendix


28


Overview

Office

Multihousing

Retail

Industrial

hotel

Appendix

Cap Rates (Office, Industrial, Retail, and hotel)

Cap rate ranges were best estimates provided by CBRe professionals based on recent trades in their local market as well as recent interaction

with investors. the ranges represent those cap rates that a given property will trade at in this current market. Stabilized cap rates were based

on in-place NOI for the latest year before adjusted for reserves. value-add cap rates were based on projected stabilized NOI. actual cap rates

within each asset class will vary, occasionally outside of the stated ranges, based on asset/location quality and property-specific opportunities for

NOI enhancement.

Cap Rates (Multihousing only)

Cap rate ranges are based on an estimated NOI derived by annualizing the last 90-days of revenue and subtracting what buyers would estimate

as stabilized, year one expenses after adjustments for real estate taxes and reserves. actual cap rates within each asset class will vary, occasionally

outside of the stated ranges, based on asset/location quality and property-specific opportunities for NOI enhancement.

CBD

the Central Business District of a major city

Class A

Best-of-class product, attract larger, top quality tenants with 5- and 10-year leases, often newer construction

Class B

Older product, mostly 5-year leases, typically previously owned

Class C

typically an older building that offers space without amenities. attracts moderate to low income tenants.

Appendix | Definitions

In ThIs Issue:

Overview

Office

Multihousing

Retail

Industrial

hotel

Appendix


29


Overview

Office

Multihousing

Retail

Industrial

hotel

Appendix

economy

Hotel chains that are priced within the 20.0-40.0% percentile in terms of average annual room rates according to Smith travel Research

Full service

a hotel property with more than 150 rooms, room service, an on-site restaurant and a concierge service.

Luxury

Hotel chains that are priced in the top 15.0% percentile in terms of average annual room rates according to Smith travel Research

neighborhood/Commercial Center (Grocery Anchored)

enclosed retail center that is anchored by a supermarket or other type of grocery store. Can range from 150K SF-350K SF

Power Center

Open-air retail center comprised of larger, brand name tenants. Limited CRu space and typically 400K+ SF or in a node of that size

select service

a hotel property with less than 150 rooms, no room service and no on-site restaurant or concierge service.

stabilized Property

a property that has an occupancy level at or above the local average under typical market conditions

suburban

Mainly residential area located within close proximity to a major city

Value-Add Property

an underperforming property that has an occupancy level below the local average under typical market conditions

Appendix | Definitions (continued)

©2011CBRichardEllis,Inc.Theinformationabovehasbeenobtainedfromsourcesbelievedreliable.Whilewedonotdoubtitsaccuracy,wehavenotverifieditandmakenoguarantee,warrantyorrepresentationaboutit.Itisyourresponsibilitytoindependentlyconfirmitsaccuracyandcompleteness.Anyprojections,opinions,assumptionsorestimatesusedareforexampleonlyaanddonotrepresentthecurrentorfutureperformanceoftheproperty.Thevalueofthistransactiontoyoudependsontaxandotherfactorswhichshouldbeevaluatedbyyourtax,finan-cialandlegaladvisors.Youandyouradvisorsshouldconductacareful,independentinvestigationofthepropertytodeterminetoyoursatisfactionthesuitabilityofthepropertyforyourneeds.

888.707.3908

www.cbre.com/capitalmarketswww.cbre.com/researchwww.cbre.com/valuation

CHRISLUDEMANPresident

CBRECapitalMarkets

JIMCoSTELLoVice President, Investment Strategy Services

CBREEconometricAdvisors

BRIANSToFFERSPresident

CBRECapitalMarkets

RAYWoNGExecutive Director, Americas

CBREResearch

ASIEHMANSoURHead of Research, Americas

CBREResearch

THoMASMCDoNNELLPresident

CBREValulationandAdvisoryServices

CBRE Cap Rate Survey August 2011

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Transcript of CBRE Cap Rate Survey August 2011