Peter Pays Paul

Inside commercial hard money lending.

Tuesday’s Recommended Reading

Tuesday, March 24th, 2009

Here are a few tidbits from around the web.

The WSJ covers the Treasuries new plan in: Treasury Releases Details on Program to Buy Troubled Assets
Calculated risk writes CRE: Cap Rate Expansion
Retail News Blog explains: The Role Of An Appraiser
CoStar warns of: The Return of the Miserly Lender
Square Feet informs us that Moody’s Commercial Property Price Index Posts Large Declines
Bloomberg. com is reporting that Defaulting Commercial Properties Hit Banks on Vacancy-Rate Rise

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Determining Market CAP Rates

Friday, January 30th, 2009

Chris Rodriguez of Retail Chatr has written on Determining Market CAP Rates. It details how CAP Rates have fallen during this recession and where they could go.

Now we are in a recession and retail property prices are moving as fast as the stock market. It is almost impossible to accurately pinpoint a property’s value as there is no common motivation from the buyers in the marketplace. One buyer is yanking money out of stocks to buy something more “secure” while another is in a 1031 exchange having sold at a great price and is now watching as his purchasing power increase daily. Not to generalize too much, but yesterdays 5.00% – 5.50% CAP Rate single tenant properties are (or should be) trading between 6.25% – 7.25% CAP Rates, depending on the lease terms, strength of the tenant and location.

Posted in Commercial Real Estate | 513No Comments »Determining+Market+CAP+Rates2009-01-30+20%3A22%3A38Peter+Maclennan