Sentences with phrase «cap rates»

Smaller markets posted average cap rates of 6 % or more in the first quarter.

There has been a secular change in cap rates for malls.

Are you concerned about where we are in the cycle, reflected by near record - low cap rates in many markets?

By comparison, the average cap rate on sales of traditional multifamily properties fell 22 basis points to 6.1 percent.

Buyers can not offer low cap rates because of rising interest rates, and sellers cite the strong economic climate as a reason for high prices.

That 1.7 percentage points greater than the 4.8 percent average cap rate for garden apartments in the top six metro areas for apartments.

Buy at cap rates higher than the cost of your capital so you earn a spread on the money and you'll be fine if your properties are managed sustainably.

They will likely have less cash flow than properties with higher cap rates but will have greater appreciation potential.

They cite transactions with cap rates of 6 percent to 12 percent, depending on the condition of the property and the retail market.

The purchase price translated into a 4.6 percent cap rate.

As cap rates lower, values rise and vice versa.

Throughout 2015 there has been continued cap rate compression in medical net lease assets, predominantly in properties with longer terms.

When asked specifically about their region, respondents were even more bearish, with just 14 percent expecting further decreases, 13 percent seeing no change and 73 percent expecting cap rate increases.

This creates a problem for investors when they are trying to determine the market cap rate for a given investment.

For well - located properties occupied by top - tier tenants it is not uncommon to see cap rates of less than 7 percent.

Just when it appears as if cap rates for apartments could not go any lower, they do.

I might be more conservative than most though when calculating cap rates.

This is a great question for all entrepreneurs who rely on the consumer for their paycheck and for all of us real estate investors who are complaining about cap rate compression.

This level puts overall retail cap rates at a new record low, but still attractive to foreign investors.

From my own experience and other out of town investors I have spoken with I would say don't get fooled by cap rates on paper.

A minority of respondents — 10 percent overall — see cap rates rising by 50 or more basis points.

Between the first and second quarter of 2014, the average cap rate spread transaction made by foreign vs. domestic buyers in gateway office markets was over 80 basis points.

These properties are cash - flowing with good cap rates.

When asked specifically about their region, respondents were a tad more bearish, with just 24 percent expecting further decreases, 16 percent seeing no change and 60 percent expecting cap rate increases.

I don't do cash on cash or cap rate calculations and I have not read enough about these concepts and do not find them totally necessary for myself.

That's only slightly higher than the current cap rate of 6.5 percent recorded for class - B and class - C apartment properties in 2017.

And, there's less incentive to buy when cap rates are rising.

Let's say for the type of property you own, based on the location, age and other factors, that the market cap rate ranges between 8 to 10.

1031 buyers seeking like kind properties for tax deferred exchanges are able to make acquisitions at a lower cap rate because they are trying to avoid tax liability.

Also, what cap rate and cash - on - cash returns do you target?

On average, respondents estimated cap rates in their region to be 6.1 percent, the same figure as last year.

As property prices rose, average cap rates fell 6.0 percent for apartment properties, down 20 basis points from the year before.

Yet this does not necessarily mean that rising interest rates will drive cap rates higher.

However, the majority of properties added to the market are vintage buildings or properties with lease terms below ten years as owners attempt to take advantage of the low cap rate environment.

You could also say cap rate is the return on your investment if you would have bought the asset with cash.

«Despite where cap rates are going to be or not be, we still see a very, very robust buyer demand still out in the market today,» he adds.

A positive cap rate means the property is bringing in positive income.

What's more, prices on retail assets have continued to increase in 2014 while cap rates have remained low.

My neighborhood would never support cap rates like what you are getting.

The coastal cities are way too expensive with cap rates below 4 %.

As shown below, the average long - term spread of cap rates over the 10 - year is about 280 basis points.

Until cap rates go down to levels that they were — either at or near the peak of the market, a lot of institutional sellers don't necessarily want or need to sell.

I live here and work with a lot of investors and most of the times you can get cap rates between 12 and 18 %.

Only 27 percent think cap rates will decrease further in the next 12 months.

Similarly, office properties with shorter leases should command a higher cap rate compared to properties with long - term leases for the same reason.

When using such historical cap rates the analyst needs to have in mind that there are measurement issues that need to be clarified and understood.

More importantly, from a financial point of view, there is enough institutional demand in the completed product that the project could be sold at attractive cap rates.

When examined by region, dollar store median asking cap rates were lowest out west for all three operators.