All property types across nearly all classes and segments changed by less than 10 basis points either up or down. 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. Outlook predicts a very good year for commercial real estate. National investor survey since 1991 for overall capitalization rates for all responses by property type is illustrated above.
Cap rate changes for office, retail and multifamily were all very smalltoo small to be considered significant. Therefore, interest in the acquisition of class b and class c quality portfolios has increased as investors are looking to place capital. Cbres north america cap rate survey for h2 2015 revealed that cap rates. The bank of canada is expected to leave interest rates. Cbre north america cap rate survey second half 2015. The upward shift of hotel cap rates that began in h1 2015 continued in the first. Cap rate survey secn hal 2014 pae 2 the h2 2014 cbre seniors housing investor survey was sent to the most influential seniors housing investors, developers, and brokers throughout the. To find out, cbre polled corporate real estate decision makers around the world to understand their objectives, opportunities and challenges for the coming year. Pwc real estate investor survey overview the pwc real estate investor survey is widely recognized as an authoritative source for capitalization and discount rates, cash flow assumptions and actual criteria of active investors, as well as property market information. By market, cap rates and asset prices may vary substantially. Cbre cap rate survey 2nd half 2015 handout free download as pdf file.
Cbres north america cap rate survey for h2 2015 revealed that cap rates for u. Cbre cap rate survey 2nd half 2015 handout interest rates. Cbre cap rate survey february 2012 investing economic growth. Multifamily cap rates tightened most across lowerquality properties. Cbres annual uk market outlook report takes a comprehensive look at the prospects for real estate in the year ahead. 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 weight of investor capital combined with healthy space market fundamentals bodes well for property values in most sectors and geographies even in a modestly rising interest rate environment.
Dec 02, 2015 t the h2 2014 cbre cap rate survey found the most significant national cap rate declines within the hotel sector. Office and industrial sectors continue to show strength, while the retail sector has begun to trend down. Further cap rate compression is expected to slowdown in the second half of 2015. Cbre india is a global commercial real estate services company providing solutions to the property owner, investor and occupier tenant. Developments are extremely fluid, and tremendous uncertainty remains regarding how broadly the virus will spread and what its ultimate impact will be on public health, economic growth and financial and real estate markets. The survey, consisting of four questions, was to capture the consumers insight on their recent experience with the process prior to a decision being rendered. The overall national canadian cap rate is down 3 bps from mid2015 to 6. The final report, with summary tables, analysis and maps, will be published in midfebruary. Research reports for real estate market in singapore, asia pacific apac and overseas. Commercial real estate pricing was broadly unchanged in h2 2017, with the exception of some retail segments. The distribution of the total valuation in this report between land and. Cbre hotels research has released a preliminary 2020 forecast that analyzes the impact of the pandemic on hotel performance and provides insight as to how hotels may start to recover in the back half of the year. The cbre cap rate survey highlights a significant disparity in investor demand for office assets across different types of markets.
We expect cap rate stability in the second half of 2018. Cap rates in the retail sector were relatively stable in h1 2016. 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. Cbre hotels team of over 265 hotel specialists understands the unique challenges and opportunities that come with investing in and divesting hotel properties. Self storage investor survey is published 3q to reflect the robust spring and summer seasons. Multifamily and industrial cap rates tightened the most. Constuction as a % of inventory office industrial source. Cbre north america cap rate survey berkeley, california. Cap rates for office assets continued to trend downward on a national basis, dropping to new lows at the end of 2016. Oneoff research reports, up to two years old if you are unable to find a specific report. Our national self storage valuation practice consists of more than 30 licensed appraisers who specialize in self storage valuation. The national investor survey in 2010 indicated average cap rates increased from 8. The authors take full responsibility for all content. There is a 450 basis point spread between the lowest and highest cap rates for stabilized class a office assets in cbd submarkets and roughly a 390 basis point spread for assets in suburban submarkets.
Q1 2011 q1 2012 q1 20 q1 2014 q1 2015 q1 2016 q1 2017 q1 2018 q1 2019 price per unit thousands capitalization rates seniors housing pice per unit multifamily price per unit seniors housing cap rates multifamily cap rates source. Cap rate compression comes on the back of increased primary and secondary capital offerings in the public market. This predecision survey consisted of questions on how they would rate the program staff, the vehicle. Trends are mixed in terms of property values and sales pricing. The midyear 20 cbre cap rate survey shows that in the office sector, the average cap rate for stabilized class a assets in cbd locations is 5. Cbre north america caprate 2014h1 master yield curve. Cap rate pricing in class a assets and in tier i markets was generally stable. Japan logistics marketview is a quarterly report providing data regarding rents. At 21%, hightech claimed the largest share of major u. The bank of canada is expected to leave interest rates unchanged, maintaining attractive investment spreads. Suburban multifamily cap rates tightened most across lowerquality properties and declined 6 basis points bps overall. North america cap rate survey second half 2018 cbre. Cbre sets the standard for national real estate research by providing clients with accurate, insightful and current market knowledge. There is not an industrial report that surveys the areas industrial.
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. Cbre cap rate survey february 2012 free download as pdf file. We are pleased to present the cbre north america cap rate survey for the second half of 2015, which highlights cap rate trends for all major property types and classes in several key markets across the u. Q1 underwriting survey reflects stable expectations for prime.
Self storage cap rates spread to apartment cap rates increased to 42. A summary of results from the cb richard ellis, inc. With more professionals focused on the office sector than any other firm globally, cbre office services delivers innovative corporate real estate solutions. Named top real estate brand in lipsey survey for 19th consecutive year business wire 08. New trends in real estate, statistics and opportunities in investment property. United states of america multifamily marketview q4 2015 smc. View all canadian cap rates on page 1 4 office investment trends historical office cap rates cap rates for office assets continued to trend downward on a national basis dropping to new lows to end 2016. However, the sentiment of survey respondents varied by property type, segment, class and metrotier. Industrial cap rates fell by basis points bps to 6.
The largest cap rate decreases were in tier ii and tier iii markets and in class b and class c assets. Office cap rates were generally stable and cap rates for hotels were also firm. The retail sector had the second highest cap rate compression nationally. This is the real estate cap rate report for the first half of 2014.
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. This survey contains investment criteria responses from more than 200 investors spread among various. The pwc real estate investor survey is widely recognized as an authoritative source for capitalization and discount rates, cash flow assumptions and actual criteria of active investors, as well as property market information. Cap rates for stabilized class a industrial space dropped 5 bps to 5. Cbre north america cap rate survey first half 2015. For cap rates, stability the driving force by matt bakerduring the second half of 2018, capitalization rates broadly remained stable, buoyed by a trio of macro factorspositive economic growth. Airport area, corona, east san bernardino, inland empire, inland empire east, inland empire west, north san bernardino, riverside, riverside riverside, san bernardino. The expected return on cost for valueadd assets was stable at 7. While the amount of new space is triggering anxiety amongst some market watchers, the bulk of the 14. Throughout the second quarter, the 10year ust averaged 2. May 30, 2017 cbre researchs q1 2017 buyer underwriting survey reflected little change in underwriting standards and return expectations despite the reduced investment activity of prime multifamily properties in q1 2017. 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.
Japan office marketview provides a quarterly survey of commercial real estate trends across the nation, providing local market views of cities. 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. Tier i markets recorded the largest decrease of 3 bps to 5. We would like to show you a description here but the site wont allow us. Cbre is pleased to present its semiannual north america cap rate survey for h2 2018, which reveals cap rates and pricing trends for all. Erix is cbre s global research application that records aggregated comparable property market data for over 200 global cities.
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. Cap rates for stabilized cbd office properties decreased by 2 bps to 6. Despite these transformational changes to our business, cbre s 2020 u. Investor outlook for capitalization rates compressed 40 to 60 basis points from our h1 2014 for class a and b properties. On a yoy basis, yield compression resulted from low levels reached in the leading gateway markets, as foreign and. Institutional multifamily returns for major markets. You have reached your report download limit for today. The h2 2014 cbre cap rate survey found the most significant national cap rate declines within the hotel sector. Cbre north america caprate 2014h1 master free download as pdf file.
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