PricewaterhouseCoopers has released the results of their 4th Quarter 2011 Real Estate Investor Survey. One of the most popular features of this report is the cap rate trend section. This issue reported the largest decline in Net Lease cap rates (recording a drop of 54 basis points). Larger declines were ... More
Archive for the ‘Industry Commentary’ Category
PwC Real Estate Investor Survey Q4 2011
Tuesday, January 3rd, 2012Sears store closings: Opportunity #1 in 2012?
Thursday, December 29th, 2011One of the biggest news stories following the Christmas holiday was the release of a list of 79 stores Sears Holdings intends to close in 2012. While this may mean trouble for existing Sears and Kmart landlords, it spells opportunity for buyers and other big box tenants looking for deals in ... More
Emerging Trends in Real Estate 2012
Monday, December 12th, 2011PricewaterhouseCoopers and The Urban Land Institute recently released their annual Emerging Trends in Real Estate report. As the theme for basically all of 2011, they note the demand for trophy assets in 24-hr gateway markets. But they also note that this once insatiable appetite for trophy deals in these ... More
C-III Capital invests $10M in Grubb & Ellis
Tuesday, November 29th, 2011Not sure how I missed this one, but C-III Capital Partners continues to make strong moves in acquiring CRE service business lines. From an October 17th, 2011 press release: Grubb & Ellis Company (NYSE: GBE), a leading real estate services and investment firm, announced today that it has entered into exclusive ... More
Cap rates hold firm as interest rates decline
Thursday, November 10th, 2011As the 10-year treasury fell below 2 percent in September, core cap rates held firm at around 7.10 percent. Current cap rate to 10-year T-Bill spreads are 512 basis points, which is up 156 bps from the low of 356 bps witnessed February of this year. As depicted in the chart ... More
Uptick in CRE Transaction Volume
Thursday, September 29th, 2011Sure enough, as soon as I comment on a slow down in transaction volume, there is an avalanche of new blockbuster deals. Just to note a few of the biggest recently announced: Blackstone’s Purchase of Equity One Portfolio Signals Confidence in Retail National Real Estate Investor - Sep 29, 2011 On Sept. ... More
PwC Real Estate Investor Survey Q3 2011
Friday, September 23rd, 2011PricewaterhouseCoopers has released its 2nd half survey findings for 2011. Through the first half of the year, most investors sounded cautiously optimistic about the rest of 2011. Not surprisingly, strong demand for multifamily product was noted. National Highlights As the United States faces an array of challenges, many investors view the commercial ... More
Moody’s CPPI and Cap Rate Compression
Thursday, September 15th, 2011As part two to yesterday's post, I wanted to examine how much of the bubble in Moody's/REAL CPPI was attributable to cap rate compression, and the portion which was attributable to something else (eg. rent growth, increase in occupancy, etc.). A disclaimer, I am in no way a statistician, but I ... More
Commercial Real Estate Verses Bonds
Wednesday, September 14th, 2011There has been lots of discussion (here and here) around the current cap rate environment, particularly for trophy assets. Most would agree that declines in trophy cap rates have followed US Treasuries, as T-Bills remain at historic lows. I wanted to step back and take a look at a 10-year perspective ... More
General Growth to spin off 30 non-core malls
Friday, January 6th, 2012In Wednesday's Wall Street Journal, there was an article on GGP's plan to spin off 30 of its weaker malls and create a new publicly traded company, Rouse Properties Inc. General Growth executives tout the separation as a means for General Growth to focus its resources on its remaining 137 best-performing ... More
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