That is a pretty broad question. I can’t say for sure for every single product type nor do I really care about CAP Rate trends for multi-tenant office/industrial/multi-family/etc. buildings in the midwest/south/east/etc. I can make an intelligent guess and say no, CAP Rates are not heading back down, they are continuing to rise – industry-wide. [...]
Here is a “Just Closed” email flyer I sent out this morning for a deal I just closed. I don’t really want to use this blog to promote all things PCI, but I thought I’d share anyway because the fact that this deal closed in 1 week start-to-finish with a holiday and weekend in the [...]
Just found this interesting tidbit online: McDonald’s is apparently changing its logo in Europe, eliminating the red background and replacing it with a “deep hunter green” background to tout their environmental credentials.
You can read the article on greenbiz.com here.
I just read a post on the CRE blog Net Lease Nation talking about the upcoming holiday season. Apparently, Fitch Ratings is bullish on the retail sector:
“Many companies across Fitch’s U.S. retail coverage have been managing inventory positions well. Gross margins have rebounded for those companies in the discretionary categories that were hit particularly hard [...]
Take a look at the image below. What do you think it is? (Answer below)
Answer: A map of every McDonald’s in the United States.
Judging by the lack of density in the western half (excluding California, Oregon and Washington) it looks like there may be some development opportunities in places like Colorado, Utah, Arizona, New [...]
John Reeder of Real Property Alpha has written a post exploring the possibility of a company’s P/E ratio predicting CAP Rates. If you look at the chart below, the numbers don’t really seem to correlate to capitalization rates as I see the market.
Company
P/E Ratio
Target
9.21
Wal-mart
14.84
Safeway
8.06
Kroger
10.94
Macy’s
9.92
J.C. Penny
5.65
P.F. Chang’s
12.03
Costco
13.65
AutoZone
14.85
The Limited
9.92
Ann Taylor
9.38
Abercrombie
5.98
New York & Co.
7.09
Burger King
15.79
McDonald’s
13.51
Nordstrom
6.69
Walgreens
10.3
CVS
10.85
The Gap
7.58
Average
10.33
Three of the [...]
