CBRE
National Retail Cap Rate Report

Fourth Quarter 2016


Cap Rates Up Slightly in Fourth Quarter and Up for Year
 

National cap rates finished the year slightly higher than at the end of the third quarter, rising 13 BP on average across the nation in the fourth quarter.  Cap rate movement varied region by region in the fourth quarter with the East and South regions showing 23 and 2 BP decreases respectively. Meanwhile, cap rates in the West and Midwest regions rose 37 and 10 BP respectively. Compared to year-end 2015, cap rates were up 41 BP across the nation on average with all regions showing increase. The data is from the CBRE Valuation & Advisory Services (VAS) database from 2005 through Q4 2016.

 

US Retail

Cap Rate Trend - Quarterly Average

Source: CBRE Valuation & Advisory

Polynomial Trend Line


 

The data points used are confirmed closed transactions, adjusted for assumed financing, and reflect overall market trends.

US Retail

Cap Rate Trend - Quarterly Average

          2015  2016
Region   Q1 Q2 Q3 Q4  Q1 Q2 Q3 Q4
East 6.56 5.86 6.56 6.13  6.29 6.32 6.40 6.17

Midwest

 6.88 7.01 7.09 6.80  6.84 7.34 7.28 7.38

South

 6.71 6.62 6.73 6.63  6.68 7.01 6.98 6.96

West

 6.66 6.08 6.38 6.15  6.23 6.25 6.07 6.44

Nation

 6.72 6.43 6.68 6.48  6.59 6.81 6.76 6.89

Chg BP

   0  -29  25 -20  11 22 -5 13

Source: CBRE Valuation & Advisory


The CBRE  Retail Valuation Group  includes our most senior appraisers with significant experience in retail valuation. Contact us for more information or an appraisal quote. Regional CBRE management contacts are below. 
 

Pacific Northwest

Jeff Grose, MAI

+1 503 946 4922

jeffrey.grose@cbre.com

Southern California/HI

Richard West, MAI

+1 213 613 3344

richard.west@cbre.com

North Central

P. Linas Norusis, MAI

+1 312 233 8662

p.linas.norusis@cbre.com

Southeast

Ronald Neyhart, MAI

+1 404 812 5020

ron.neyhart@cbre.com

Northern California

Elizabeth Champagne, MAI

+1 415 986 7395

elizabeth.champagne@cbre.com

Intermountain

Michael Rowland, MAI

+1 602 735 5508

michael.rowland@cbre.com

South Central

Stephen DuPlantis, MAI

+1 713 840 6625

steve.duplantis@cbre.com

Northeast

Michael Pecorino, MAI

+1 212 207 6102

michael.pecorino@cbre.com

Florida 

James Agner, MAI

+1 305 381 6480 

james.agner@cbre.com           

New York 

Helene Jacobson, MAI

+1 212 207 6106 

helene.jacobson@cbre.com                                        		              

 






 
 
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