May
17

Cap Rates Plummeted During First Quarter

By

– Retail Traffic

An uptick in investment in top retail properties helped send average cap rates for the sector down for the first quarter.

Overall, the national cap rate decreased 24 basis points in the first quarter of 2010 to 8.34 percent, according to data from Valuation & Advisory Services. It is the first major decline that the brokerage firm has measured in three years. The data jibes with other reports that indicated an improvement in the investment sales climate driven primarily by transactions on class-A assets. In fact, some analysts have speculated that since the most closings are for the best assets, it is skewing the data a bit. If more deals were closing on class-B or class-C centers, average cap rates would be higher.

ARTICLE SHORTENED DUE TO LENGTH….

LINK TO ARTICLE HERE

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