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September 2010
Edward D. Jones & Co. has leased 1,039 square feet of Retail space  [more]
August 2010
Restoration Hardware, Inc has leased 5,391 square feet of Industrial space  [more]
Alberto Palomino, LLC has leased 2,790 square feet of Retail space  [more]
July 2010
Alexander M Zvegintzov (Plaza Home Mortgage) has leased 1,409 square feet of Office space  [more]
June 2010
Prime Selection, Inc. has leased 4,050 square feet of Industrial space  [more]
Pure Motorsport, LLC has leased 2,821 square feet of Industrial space  [more]
May 2010
Paylease, Inc. has leased 3,921 square feet of Office space  [more]
Scarcity Premium Seen Driving Current Cap Rate Compression
Noor Clothing, Inc. has leased 2,630 square feet of Retail space  [more]
April 2010
Vy Nguyen and Edwin Widjojo dba Ocean Foot Massage has leased 2,790 square feet of Retail space  [more]
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Scarcity Premium Seen Driving Current Cap Rate Compression

By Mark Heschmeyer

May 5, 2010

 

Last year, capitalization rates on large office property sales rocketed from the mid-6 range to the mid-8 range. So far this year, cap rates have reversed course, falling back just as rapidly to mid-7 range. Under 'normal' conditions, this would imply that property values are increasing. So why isn't the commercial real estate industry elated?

 

Cap rates are a benchmark determined by dividing income by property value. Increasing cap rates typically imply that property values are falling. Last year, no one in commercial real estate doubted that the rapid rise in cap rates reflected an equal rapid decline in property values.

 

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http://www.costar.com/News/Article.aspx?id=343E735AAEE9EEAF33F56A1EF3BECB28