CBRE
National Retail Cap Rate Report

Second Quarter 2016


Cap Rates Continue Increase in Second Quarter
 

Indicated cap rates derived from national retail sales rose slightly in the second quarter of 2016 in all regions of the country.  The Midwestern region of the country experienced the biggest movement, rising 50 BP with the South close behind, rising 33 BP. The East and West regions experienced a much more subtle increase.  The data is from the CBRE Valuation & Advisory Services (VAS) database from 2005 through Q2 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

        2014                 2015 2016
Region Q3 Q4    Q1 Q2 Q3 Q4  Q1 Q2
East 6.41 5.84 6.56 5.86 6.56 6.13  6.29 6.32

Midwest

 7.47 7.03 6.88 7.01 7.09 6.80  6.84 7.34

South

 7.07 7.05 6.71 6.62 6.73 6.63  6.68 7.01

West

 6.62 6.32 6.66 6.08 6.38 6.15  6.23 6.25

Nation

 6.99 6.72 6.72 6.43 6.68 6.48  6.59 6.81

Chg BP

-1  -27    0  -29  25 -20  11 22

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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