View Document - Sperry Commercial Sperry Commercial

July 2013
Published Augus t 2013
Office Month in Review
• Sales of significant office properties totaled $6.3b
in July, about average compared to other months
this year but down 12% from a year earlier. Sales
of suburban properties declined 32% yoy, the
first monthly decline in over a year while CBD
properties recorded a 19% yoy increase. • The dip in activity in July primarily resulted from
fewer portfolio transactions. Individual property sales were down just 5% yoy. So far it does
not appear that the increase in interest rates has
dampened volume, but may have spurred investors into action. In July alone, over $7.0b of office
property went under contract, a high number
particularly for the summer. • Cap rates on office acquisitions do not appear to
have been negatively impacted by rising interest
rates so far. Yields continue to trend lower for
deals closed in July as well as for the considerable
number of deals reported in contract. • Office prices have been steadily rising on a
national basis, up 2.8% so far this year, with
appreciation in the segments leading the recovery
now being eclipsed by those that have previously
been out-of-favor (see pages 2-3.)
Monthly Volume & Pricing Trends
CBD
Suburban
All Office
cap rate
9.5%
9.5%
8.5%
8.5%
7.5%
7.5%
6.5%
6.5%
5.5%
$20
'10
'11
'12
'13
'10
'11
'12
'13
transaction volume
billions
'10
'11
'12
'13
billions
billions
5.5%
$20
$15
$15
$10
$10
$5
$5
$0
'10
'11
'12
'13
'10
'11
'12
'13
'10
'11
'12
'13
year-over-year change
300%
300%
100%
-100%
$0
100%
'10
'11
'12
'13
'10
'11
'12
'13
'10
'11
'12
'13
©2013 Real Capital Analytics, Inc. All rights reserved. Data believed to be accurate but not guaranteed; subject to future revision; based on properties & portfolios $2.5m and greater.
-100%
1
July 2013
Price Trends: Q2’13 RCA CPPITM Results
Q2'13
Index
Summary Table
%
% Change
Peak
YTD
1 Yr
3 Yr
5 Yr
12.6% 18.6% 35.4% -19.9% 79.0%
Hotel
144.0
Apartment
186.9
8.3% 15.6% 58.3%
Retail
144.4
8.9% 13.1% 26.3% -17.2% 76.0%
5.5% 99.5%
All Types
155.5
4.7%
9.5% 34.5% -11.3% 83.6%
Office
149.0
2.8%
8.1% 33.6% -15.5% 80.0%
Industrial
126.1
-2.6%
-2.5%
7.2% -23.7% 73.3%
National Office Price Trends
220
200
CBD
index value
180
160
Office
140
120
100
Suburban
80
year-over-year change
50%
60
30%
10%
-10%
-30%
-50%
CBD
'05
'06
'07
'08
Suburban
'09
'10
'11
'12
'13
Office Price Trends
Subtypes
3 mos
11%
NMM CBD *
8%
7%
5%
7%
4%
NMM Suburban *
Suburban Office *
Single-Tenant
2%
Office *
1%
6MM Suburban*
-1%
CBD Office *
-6%
6MM CBD *
12 mos
25%
19%
8%
7%
9%
3%
Regions
24%
29%
Midwest
7%
West
5%
5%
Southeast
2%
Southwest
NEMA
-12%
-7%
14%
7%
* part of Moody’s/RCA CPPI; # peak defined as Q4’07
^ 6MM - 6 Major Metros; NMM - Non-Major Metros; lrg - large >75k sf; sm - small <75k sf
• Nationally,offi
cepriceswereup2.8%inthefirst
halfof2013withQ2gainsslightlyhigherthan
inQ1.Overthepastyear,thenationalMoody’s/
RCACPPIforoffi
ceisup8.1%,bringingprices
to80%ofpeaklevels.Th
issteadyriseinprices
nationallymaskssignificantchangesoccurring
bysubtypeandmarket.
• Priceappreciationintheoffi
cesectorhasbeen
eclipsed by more rapid appreciation for the
otherpropertytypesthisyear,exceptforindustrial. Th
e retail and hotel sectors have seen
particularly sharp increases in recent periods
whileapartmentpriceshavefullyrecoveredto
peaklevels.
• A leader throughout the recovery, prices of
CBD properties in the 6 Major Metros have
tempered,risingjust3%overthepastyearand
experiencing a small correction in Q2. Prices
continuetoriseatahealthyclipinManhattan
andSanFrancisco,buthavestagnatedinBoston,Chicago,andDC.
• As investors’ appetite for risk grows, they are
startingtobiduppricesforpropertytypesand
marketswherepricesarestillwelloffpeaklevels. Nowhere is that more evident than in the
recent price trends in the Non-Major Metros.
Both CBD and suburban prices in these markets posted the strongest gains in Q2, significantlyoutperformingtheirpeersinthe6Major
Metros.
• Th
eappetiteforriskandmovementofcapital
to areas previously overlooked is also clearly
evidentinregionaloffi
cepricing.Th
elongsufferingMidwestfinallyjumpedtothetopwitha
spikeinactivityandpricelevelsdespiterather
lackluster results in Chicago. Similarly, the
Southeast recorded strong gains last quarter
andoverthepastyear,withAtlantaandTampa
amongtheoutperformers.
©2013 Real Capital Analytics, Inc. All rights reserved. Data believed to be accurate but not guaranteed; subject to future revision; based on properties & portfolios $2.5m and greater.
2
July 2013
Price Trends: Q2’13 RCA CPPITM Results
• Th
e list of markets with the largest gains in
investmentactivityand/orpropertypricessofar
thisyearincludesmanyofthemostheavilydistressed markets that investors had avoided during the down cycle: Las Vegas, Tampa, Atlanta,
Sacramento and tertiary markets in the West,
MidwestandSouthwest.
• Considerablepositivemomentumremainsinthe
TexasmarketsaswellasinManhattan.However,
pricesforotherleadersthroughouttherecovery
such as DC, Seattle, and Boston have stagnated
in recent quarters. San Francisco and Denver
haveenjoyedrobustpriceappreciationalthough
volumeislowerthisyear,perhapsindicatinglow
availabilityofofferings.
• Markets losing momentum this year include
Phoenix, Chicago and Orlando, having experiencedsomepricerecoverywhichpromptedlenderstodisposeofevenmoretroubledproperty.
H1’13 MARKET MOMENTUM—COMMERCIAL PROPERTIES*
40%
West Others
30%
Dallas/Houston/Austin
Las Vegas
H1'13 Price Change
20%
Midwest ex Chicago
Denver
San
Francisco
NYC-Manhattan
Tampa/SW FL
Orange Co
Philly/Baltimore
10%
San Jose
LA County
Atlanta
Sacramento
Oakland
San Diego
0%
Southwest Others
Miami/So FL
InlandEmpire
Seattle
DC Metro
Southeast ex FL/Atl Boston
Orlando/Central FL
Chicago NEMA Others
Phoenix
NYC-Burbs
NYC-Boroughs
-10%
-20%
-50%
0%
Jacksonville/N FL
50%
H1'13 Volume Change YOY
100%
150%
* Commercial properties include office, retail and industrial property types
©2013 Real Capital Analytics, Inc. All rights reserved. Data believed to be accurate but not guaranteed; subject to future revision; based on properties & portfolios $2.5m and greater.
3
July 2013
Market Table: All Office Summary
Transactions Reported Closed —
2013 YTD Through July
Mid-Atlantic
Midwest
Northeast
Southeast
Southwest
West
Baltimore
DC
DC MD burbs
DC VA burbs
Philadelphia
Pittsburgh
Richmond/Norfolk
Tertiary Mid-Atlantic
Total
Chicago
Cincinnati
Cleveland
Columbus
Detroit
Indianapolis
Kansas City
Minneapolis
St Louis
Tertiary Midwest
Total
Boston
Hartford
Long Island
Manhattan
No NJ
NYC Boroughs
Stamford
Westchester
Tertiary Northeast
Total
Atlanta
Broward
Charlotte
Jacksonville
Memphis
Miami
Nashville
Orlando
Palm Beach
Raleigh/Durham
Tampa
Tertiary Southeast
Total
Austin
Dallas
Denver
Houston
Phoenix
San Antonio
Tertiary Southwest
Total
East Bay
Inland Empire
Las Vegas
Los Angeles
Orange Co
Portland
Sacramento
Salt Lake City
San Diego
San Francisco
San Jose
Seattle
Tertiary West
Total
US Other
Total US
CBD
Suburban
Vol ($M) # Props
$11.8
1,846.3
222.5
7.3
147.5
3
22
7
2
2
PPSF
$46
578
Avg. Cap
Vol ($M) # Props
Rate
PPSF
$196.5
17
$119
7.4%
473.7
768.0
246.0
89.2
14.7
210.0
$1,998.3
732.1
41.9
113.4
42.5
220.3
63.1
61.9
384.8
150.9
446.2
$2,257.1
1,195.1
28.2
109.7
17
28
20
4
3
22
111
50
7
7
5
21
10
11
24
12
50
197
40
3
14
214
252
153
171
123
96
$179
96
17
72
104
85
121
30
128
100
96
$95
186
71
105
6.3%
7.3%
6.9%
601.9
6.9
148.7
76.3
59.0
$2,225.8
1,555.2
153.8
217.5
185.1
51.7
225.9
89.0
58.0
55.1
154.7
239.1
696.5
$3,681.6
560.0
1,502.4
559.7
1,485.9
504.1
102.3
392.5
$5,107.0
219.5
135.8
110.2
3,154.2
412.5
130.7
63.7
35.4
350.7
66.0
1,121.4
539.5
353.9
$6,693.5
337.6
$22,301.0
33
2
14
7
9
122
48
22
21
9
6
20
10
12
9
7
15
94
273
23
77
37
45
36
11
59
288
13
25
11
119
34
8
13
6
29
6
38
23
46
371
17
1,379
151
141
112
94
62
$148
162
84
114
91
136
235
94
51
131
156
122
127
$140
173
157
162
224
155
103
89
$166
192
109
118
274
198
144
111
169
246
177
320
279
127
$236
5.6%
121
74
378
$2,235.3
1,339.1
59.2
37.7
95.4
20.8
146.8
36
26
3
3
4
3
4
$380
197
50
32
5.9%
7.9%
459.4
17.9
23.6
$2,199.8
623.5
22.7
7
2
4
56
18
1
155
8.1%
47
$136
295
8.0%
9,682.6
113.7
201.0
25.8
81
7
12
1
702
118
257
5.1%
6.2%
6.1%
16.2
$10,685.6
499.2
2
122
7
84
$577
187
5.4%
331.4
3.0
7
2
220
6.8%
282.0
59.1
251.9
7
6
7
294
102
51.4
70.7
325.0
$1,873.6
334.7
258.1
616.3
652.2
3.3
10.0
21.4
$1,895.8
22.0
4
4
23
67
5
6
10
4
1
1
2
29
1
132
129
82
$154
247
57
239
233
90
98
$200
All Office
Avg. Cap
Vol ($M) # Props
Rate
8.7%
7.5%
6.4%
5.9%
6.7%
1,201.1
11
326
6.5%
154.9
7.2
121.5
176.9
894.4
70.6
1,296.1
78.9
$4,023.5
5
1
4
3
26
5
17
2
75
268
7.0%
101
310
396
173
376
222
$336
$22,913.7
385
$308
5.1%
6.7%
6.1%
6.3%
$165
8.7%
7.3%
7.8%
7.2%
8.3%
8.1%
8.1%
7.0%
6.6%
7.1%
8.7%
7.2%
8.1%
8.5%
7.9%
7.5%
7.5%
8.1%
8.0%
7.9%
8.0%
7.5%
7.9%
7.4%
6.8%
7.5%
8.5%
7.6%
6.3%
6.7%
6.4%
7.3%
6.0%
6.2%
6.9%
7.6%
6.8%
7.4%
$208.2
1,846.3
473.7
768.0
468.5
96.5
162.2
210.0
$4,233.6
2,071.2
101.1
151.1
137.9
241.1
209.9
61.9
844.2
168.8
469.7
$4,457.0
1,818.7
50.9
109.7
9,682.6
715.6
207.9
174.5
76.3
75.1
$12,911.4
2,054.4
153.8
548.9
188.1
51.7
507.9
148.2
309.9
55.1
206.0
309.8
1,021.5
$5,555.3
894.8
1,760.4
1,175.9
2,138.1
507.4
112.3
413.9
$7,002.9
241.5
135.8
110.2
4,355.2
412.5
285.6
70.9
156.9
527.6
960.4
1,192.0
1,835.6
432.8
$10,717.1
337.6
$45,214.7
20
22
17
28
27
6
5
22
147
76
10
10
9
24
14
11
31
14
54
253
58
4
14
81
40
14
15
7
11
244
55
22
28
11
6
27
16
19
9
11
19
117
340
28
83
47
49
37
12
61
317
14
25
11
130
34
13
14
10
32
32
43
40
48
446
17
1,764
PPSF
Avg. Cap
Rate
$109
578
214
252
136
156
325
96
$246
147
42
55
92
79
94
30
142
74
90
$113
207
74
105
702
145
251
114
94
66
$372
166
84
159
91
136
264
97
60
131
150
125
104
$144
198
138
195
227
154
103
90
$175
201
109
118
286
198
192
119
124
265
364
300
341
142
$267
$216
©2013 Real Capital Analytics, Inc. All rights reserved. Data believed to be accurate but not guaranteed; subject to future revision; based on properties & portfolios $2.5m and greater.
7.4%
5.6%
6.3%
7.3%
7.0%
7.7%
8.7%
6.8%
7.8%
7.2%
8.3%
8.1%
8.1%
8.0%
7.0%
5.1%
6.5%
6.1%
7.1%
8.7%
6.0%
8.0%
8.3%
7.4%
7.0%
7.5%
7.9%
8.1%
8.1%
8.1%
7.9%
7.5%
7.6%
7.2%
6.8%
7.5%
8.5%
7.5%
6.3%
6.7%
6.4%
7.1%
7.3%
6.0%
5.5%
6.4%
6.8%
7.6%
6.7%
7.1%
4
July 2013
Selected Investment Sales Transactions
Reported in the Past 45 Days
Property Name
Address
Location
SF
Year Built
Notes
Price
PPSF
Qualifier
Owner
Seller
Broker
Mid-Atlantic
Washington Harbour
3000-3050 K St NW
Washington, DC
557,961
1987
CBD
$371,500,000
$666
approximate
Principal Real Estate Investors JV
Hana Daol Trust from
MRP Realty
JV Rockpoint Group by HFF
One Metro Center
701 13th St NW
Washington, DC
520,441
2003
CBD
$308,000,000
$592
approximate
Jamestown Properties from
ING Clarion by Cassidy Turley
MeadWestvaco HQ
501 S 5th St
Richmond, VA
310,950
2009
CBD
$143,600,000
$462
confirmed
Select Income REIT from
NewMarket Corporation by
Tower 1 2 3
1701 SAIC Dr
Mclean, VA
640,000
1980
Suburban
$85,000,000
$133
approximate
Meridian Group from
Campus Point Realty Corp
Fairmont Building
7735 Old Georgetown Rd
Bethesda, MD
122,543
1964
Suburban
$46,000,000
$375
approximate
Choice Hotels International from
Akridge
RE Services by Cushman & Wakefield
NAIFA HQ
2901 Telestar Ct
Falls Church, VA
73,000
1999
Suburban
$16,000,000
$219
approximate
Bernstein Management Corporation
from
National Association of
Insurance and Financial Advisors
NAPFE
1628th 11th St
Washington, DC
27,871
1983
CBD
$5,500,000
$197
approximate
Fortis from
National Alliance of
Postal and Federal Employees by CBRE
300 South Wacker
300 S Wacker Dr
Chicago, IL
512,354
1971
CBD
$112,500,000
$220
approximate
Kemper Building
1 E Wacker
Chicago, IL
526,158
1962
CBD
$94,000,000
$179
approximate
Amtrust Realty Corporation from
Kemper Corp
Higbee Building
100 Public Sq
Cleveland, OH
815,000
1931
Suburban
$79,000,000
$97
confirmed
Rock Gaming JV Caesars Entertainment
from
Forest City Enterprises
Atrium One
201 E 4th St
Cincinnati, OH
566,509
1981
CBD
$40,835,000
$72
approximate
Smith/Hallemann Partners
from
Convergys
One Post Office Square
Post Office Square
Boston, MA
824,110
1981
CBD
$550,000,000 1
$667
approximate
Morgan Stanley from
Eastdil Secured
fmr Robert Hall Building
333 W 34th St
New York, NY
338,409
1954
CBD
$220,300,000
$651
confirmed
ARC NYRR from
Lang LaSalle
180 Water Street
180 Water St
New York, NY
520,000
1971
CBD
$151,000,000
$290
confirmed
HFF
Midwest
Beacon Capital Partners from
Harbor
Group Int'l JV Electra Ltd by Jones Lang
LaSalle
Northeast
Emmes & Co from
Blackstone by
SL Green by
Jones
Melohn Properties Inc
©2013 Real Capital Analytics, Inc. All rights reserved. Data believed to be accurate but not guaranteed; subject to future revision; based on properties & portfolios $2.5m and greater.
5
July 2013
Selected Investment Sales Transactions
Reported in the Past 45 Days
Property Name
Address
Location
SF
Year Built
Notes
Price
PPSF
Qualifier
Owner
Seller
Broker
Spring Studios (5F-7F)
50 Varick St
New York, NY
158,573
2013
CBD
$90,800,000
$573
confirmed
50 Congress Street
50 Congress St
Boston, MA
179,872
1910
CBD
$51,000,000
$284
confirmed
KBS Strategic Opportunity REIT from
Nordblom Co by HFF
Steinway Hall
109 W 57th St
New York, NY
246,810
1924
CBD
$46,200,000
$187
approximate
JDS Dev JV Property Markets Grp JV
Atlantic Investors LLC JV Ambase Corp from
Steinway Musical Instruments Inc by CBRE
202 Canal Street
202 Canal St
New York, NY
47,551
1991
CBD
$41,250,000
$867
confirmed
Keystone Equities from
Bank of East
Asia by Cushman & Wakefield
850,000
1962
CBD
$39,333,333
$46
approximate
Buckingham Properties from
Corporation
133,684
2000
Suburban
$18,000,000
$135
confirmed
Wildwood Center
2300 Windy Ridge Pkwy
Atlanta, GA
697,000
1988
Suburban
$98,750,000
$142
approximate
Vision Properties from
CBRE Global
Investors by Eastdil Secured
Galleria 300
300 Galleria Pkwy Se
Atlanta, GA
435,000
1987
Suburban
$62,775,000
$144
approximate
Brookdale Group from
Properties by CBRE
Coconut Grove Bank HQ
2701 S Bayshore Dr
Miami, FL
75,000
1959
Suburban
$55,000,000
$733
approximate
Terra Group JV Related Group from
Coconut Grove Bank
Bank of America Plaza
414 Union St
Nashville, TN
436,000
1977
CBD
$42,800,000
$98
confirmed
Lingerfelt Companies from
Properties
Liberty Square
55 Beattie Pl
Greenville, SC
420,791
1981
CBD
$38,000,000
$90
approximate
Perimeter Office Building
5660 New Northside Dr
Atlanta, GA
277,000
1989
Suburban
$37,250,000
$134
approximate
IntercontinentalExchange Inc from
Banyan Street Capital by CBRE
Carmel Executive Park
Carmel Executive Park St
Charlotte, NC
223,850
1981
Suburban
$25,450,000
$114
approximate
Adler Group (FL) JV Kawa Capital
Management Kawa Capital Management
from
Pizzagalli Properties by CBRE
311,201
1982
CBD
$20,883,333
$67
approximate
Allegiance Realty Corp from
EGS Commercial Real Estate
by Cushman & Wakefield
213,561
1988
Suburban
$20,425,000
$96
approximate
Biscayne Atlantic JV PointOne Holdings
JV Red Starr Investments from
Parmenter
Realty Partners by Cushman & Wakefield
Xerox Square
100-140 Clinton Ave S
Rochester, NY
Offices at Liberty Corner
106 Allen Rd
Basking Ridge, NJ
ARC NYRR from
Estate Four
Silverman Group from
Xerox
Mack-Cali
Southeast
Financial Center
505 20th St N
Birmingham, AL
Gwinnett Commerce Center
3700 Crestwood Pkwy NW
Duluth, GA
Childress Klein
Parkway
Highbrook Investment Management from
Lehman Bros Holdings by CBRE
©2013 Real Capital Analytics, Inc. All rights reserved. Data believed to be accurate but not guaranteed; subject to future revision; based on properties & portfolios $2.5m and greater.
6
July 2013
Selected Investment Sales Transactions
Reported in the Past 45 Days
Property Name
Address
Location
SF
Year Built
Notes
Price
PPSF
Qualifier
Owner
Seller
Broker
Southwest
161 Inverness
161 Inverness Dr W
Englewood, CO
256,767
1997
Suburban
$71,000,000
$277
confirmed
Artis REIT from
Dividend Capital
Diversified Property fund by Cushman &
Wakefield
Parmer at Tech Ridge
701 E Parmer Ln
Austin, TX
320,597
1999
Suburban
$57,333,333
$179
approximate
Gladstone Commercial from
Estate
Carpenter Corporate Ctr I & II 226,822
2001-2101 John Carpenter Fwy
2008
Irving, TX
Suburban
$49,509,000
$218
confirmed
Lincoln Medical Center
11960 Lioness Way
Parker, CO
122,017
2007
Suburban
$42,000,000
$344
approximate
HTA (REIT) from
Group by CBRE
Broadway 101
2141-2151 E Broadway Rd
Tempe, AZ
162,484
1999
Suburban
$27,100,000
$167
confirmed
GLL Real Estate Partners from
Group by Jones Lang LaSalle
Interchange Office Center
19111 N Dallas Pkwy
Dallas, TX
152,163
1997
Suburban
$24,200,000
$159
approximate
Brookwood Financial Partners from
CBRE Global Investors by Eastdil Secured
650,275
1966
CBD
$437,500,000
$673
approximate
GI Partners OBO CalPERS from
Global REIT by Eastdil Secured
Lantana Media Campus
3000 W Olympic Blvd
Santa Monica, CA
462,429
1989
Suburban
$313,707,000
$678
confirmed
Jamestown Properties from
Group by Eastdil Secured
505 First & 83 King
83 S King St
Seattle, WA
492,504
1904
CBD
$224,936,666
$457
confirmed
Hudson Pacific Properties from
Street Capital by Eastdil Secured
Landmark Square
111 W Ocean Blvd
Long Beach, CA
460,000
1991
Suburban
$136,000,000
$296
confirmed
John Hancock AKA Manulife Financial
from
Brookfield Asset Mgmt JV
Blackstone by Eastdil Secured
188,396
2000
CBD
$106,407,264
$565
confirmed
Hudson Pacific Properties from
Street Capital by Eastdil Secured
192,958
1989
Suburban
$75,000,000
$389
confirmed
East West Bank JV Downtown Properties
from
MPG Office Trust
131,143
1980
CBD
$71,200,000
$543
confirmed
Morgan Stanley (MSREF) from
Realty (SSR) by Eastdil Secured
Encino Executive Plaza
16501 Ventura Blvd
Encino, CA
191,000
1986
Suburban
$61,000,000
$319
confirmed
Douglas Emmett Realty from
Kennedy
Wilson JV Fairfax Financial JV Lefrak
Organization
Westwood Terrace
1640 S Sepulveda Blvd
Los Angeles, CA
139,938
1987
Suburban
$54,000,000
$386
approximate
Ocean West Capital Partners JV Westbrook
Partners from
Jamison Services by CBRE
Karlin Real
Chambers Street Properties from
Opus
Development Solutions
PM Realty
West
One Wilshire
624 S Grand Ave
Los Angeles, CA
Metropolitan Park North
1220 Howell St
Seattle, WA
Plaza Las Fuentes
135 N Los Robles Ave
Pasadena, CA
Market Place l & ll
2001-2003 Western Ave
Seattle, WA
Hines
Lionstone
Spear
Spear
BlackRock
©2013 Real Capital Analytics, Inc. All rights reserved. Data believed to be accurate but not guaranteed; subject to future revision; based on properties & portfolios $2.5m and greater.
7
July 2013
Notes & Definitions
REAL CAPITAL ANALYTICS
ABOUT REAL CAPITAL ANALYTICS
www.rcanalytics.com
Real Capital Analytics, Inc (RCA) is an independent
research firm focused exclusively on the capital investment markets for commercial real estate. RCA offers
the most in-depth, comprehensive and current information of activity in the industry. Formed in 2000, RCA has
offices in New York City, San Jose, and London. In addition to collecting transactional information for property
sales and financing, RCA interprets the data including
capitalization rates, market trends, pricing and sales
volume. The firm publishes a series of Capital Trends
reports and offers an online service that provides realtime, global transactional market information. For more
information, visit: www.rcanalytics.com.
US Headquarters
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Toll-Free: 1.866.REAL.DATA
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Phone: 408.371.8880
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Phone: +44.207.297.6860
Robert M White, Jr Founder & President
Nina Turner Director, Marketing Communications
Christina Wu Marketing Coordinator
Doug Murphy Director, Analytics
Andrew Pisanelli Sr. Manager, Analytics
Yiqun Wang Sr. Manager, Global Indices
Hermann Lademann Senior Analyst
Michael Gilligan Sr. Web Developer
Ryan McGrath Analyst
ABOUT US CAPITAL TRENDS
US Capital Trends is published by Real Capital Analytics, Inc. Copyright ©2013 Real Capital Analytics, Inc.
All rights reserved.
It is a violation of Federal law to photocopy or reproduce any part of this publication, or forward it electronically, without first obtaining permission from Real
Capital Analytics, Inc. To subscribe as an individual or
to purchase a corporate license for your office, please
call 1.866.REAL.DATA.
Information presented by RCA has been compiled from
sources believed to be reliable. While we have no reason
to doubt its accuracy, RCA makes no representation or
warranty regarding the information. The information is
provided as is without warranties of any kind, express
or implied, and may be subject to material revisions.
NOTES & METHODOLOGY
The information maintained by RCA and presented in this
report encompasses markets nationally and includes only
properties or portfolios $2.5m or greater. Readers should
note that there is substantial investment activity, largely
local in nature, that falls below this threshold and is not
captured in this report.
Records are maintained for transactions that represent
the transfer of a controlling interest in a property or portfolio of properties that are $2.5m or greater. Transactions
are assumed to be fee simple; leasehold and commercial condominium interests are noted, if known. Transactions include both real estate asset sales as well as
transactions involving real estate operating and investment entities. Thus, for example, merger and acquisition
activity among entire REITs or other real estate entities
is included in this report unless noted otherwise.
Sales of partial interest transactions will receive credit
and be valued at the pro-rated share.
For this report, market classifications are defined as
followed:
Major Metros: Boston, Chicago, DC Metro, LA Metro,
NYC Metro and SF Metro
Secondary: Atlanta, Austin, Charlotte, Cincinnati,
Cleveland, Columbus, Dallas, Baltimore, Denver, Detroit,
Houston, Indianapolis, Jacksonville, Kansas City, Las
Vegas, Memphis, Milwaukee, Minneapolis, Nashville,
Norfolk, Orlando, Philly Metro, Phoenix, Pittsburg, Portland, Raleigh/Durham, Sacramento, Salt Lake City, San
Antonio, San Diego, Seattle, South Florida, St Louis
and Tampa.
Tertiary: All other US markets.
Commercial Property Price Indices (RCA CPPI):
CPPI use advanced repeat-sale regression (RSR) methodology, which uses qualified repeat sale observations
to measure price change in commercial real estate. All
CPPI are based on similar index methodology developed
by RCA and further information is available on our website. The US suite of CPPI includes 20 Moody’s/RCA CPPI
national benchmarks and over 200 RCA CPPI for regions,
markets and property niches.
The Moody’s RCA CPPI suite includes national composites for all property types and all commercial. Each of
the apartment, CBD office, suburban office, retail and
industrial sector indices are composites with each based
on Major Metro and Non-Major Metro indices.
The RCA CPPI were developed and published by Real
Capital Analytics to compliment the Moody’s/RCA CPPI
but are not maintained, reviewed, endorsed, or otherwise affiliated with Moody’s Investors Service or its
affiliates.
Ranking Methodology: Based on transactions $2.5m
and greater. Full dollar value is assigned to each buyer,
seller, or broker in joint venture transactions. Partial
interest sales are included at the pro-rated share of the
total property or portfolio value.
Trend analysis may exclude certain transactions that
exceed 5% of the data sample or that may otherwise
skew results. A complete glossary and methodology can
be found at www.rcanalytics.com.
Abbreviations:
PPSF=
Price Per-Square-Foot
Basis Points
YOY= Year-Over-Year
BPS=
YTD= Year-to-Date
Q1= First Quarter of Year
H1= First Half of Year
©2013 Real Capital Analytics, Inc. All rights reserved. Data believed to be accurate but not guaranteed; subject to future revision; based on properties & portfolios $2.5m and greater.
8