MarketScoop: Industrial Case Study
How Location and Other Factors Impact Industrial Cap Rates
At mid-year 2018, single-tenant industrial cap rates continued to compress across the market. Since peaking in 2010, average rates have fallen to an all-time low of 6.21 percent. It is expected that we will begin to see increases in the next 12 months or so, since retail cap rates have already started inching upward and that trend is typically a leading indicator.
While this “whole market” picture is insightful and informative for tracking overall market trends, it can present challenges for buyers and sellers when they try to accurately price or value an individual asset, especially in today’s shifting market. For properties with qualities that impact pricing significantly, a more tailored analysis is required... (Click image to view or print full-resolution PDF)