Stabilized properties are assets leased at market rents with typical lease terms and have vacancy levels close to market averages.Cap rates within each subtype vary, occasionally falling outside the stated ranges, based on asset location, quality and property-specific characteristics. The ranges represent the cap rates at which a given asset is likely to trade in the current market. These estimates are informed by recent trades within their respective markets and discussions with investors. The cap rates presented in this report are based upon estimates by CBRE capital markets and valuation professionals.Markets conform to metropolitan area and metropolitan divisions as defined by U.S.Figure 13: Average rank of each risk factor by property type, 1 = greatest risk The prospect of tighter lending standards has garnered the least concern. There is more dispersion around concern for income growth with office being the clear outlier. However, inflation appeared to generate the most apprehension in the operations-heavy hotel sector. Inflation was a middling concern across most sectors. Office and hotel appear to draw less concern, likely because fundamental risks around occupancy outweigh financing costs. The second greatest concern is earlier and more aggressive rate hikes, which is a concern in the leveraged multifamily space. Specifically, office respondents rate this the highest, while multifamily respondents are less concerned, arguably because low homeownership rates and affordability largely compensate for a potential economic slowdown. The stop-start nature of economic activity during the past two years has most respondents believing general macro uncertainty is the greatest risk factor. The way survey respondents perceive macroeconomic risks yields interesting results. Macro risk concerns vary by property type
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |