Archive for November 2008
Key Index Data
We thought a few additional economic indices might be of use, and as requested.
Key Economic Rates |
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| 6-Month CDs | 3.13 |  |
| Moody’s Baa | 7.16 | |
| Consumer Confidence | 51.90 | |
| Sources: Federal Reserve Board, The Conference Board | ||
Selected NCREIF Returns |
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| East Industrial Income Return | 6.39 |  |
| West Industrial Income Return | 5.55 | |
| Midwest Retail Total Return | 10.27 | |
| Source: NCREIF | ||
Selected RERC Survey Data |
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| Nat. Neigh/Comm IRR | 8.50 | |
| Nat. Apartment IRR | 8.30 | |
| Nat. Sub Off Terminal | 7.60 | |
| Source: RERC | ||
Selected Transaction Data |
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| Midwest Hotel W.Avg $/Unit | $122,812 | |
| Midwest Industrial W.Avg $/SF | $54 | |
| National Retail W.Avg $/SF | $153 | |
| Unemployment Rate 6.5%
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Indy Metro Investment Criteria 3Q 2008
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Capitalization rates have increased, in most all asset classes, for the Indy Metro Market. We had been watching the multi-family investment criteria closely but it has also softened in the third quarter. Indianapolis |
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| 3Q 2008 | ||||||||||||
| Indianapolis Investment Criteria | ||||||||||||
| Pre-Tax Yield (%) | Going-In Cap Rate (%) | Terminal Cap Rate (%) | ||||||||||
| RERC Estimate |
Midwest Region |
US | RERC Estimate |
Indianapolis Survey |
Midwest Region |
US | RERC Estimate |
Midwest Region |
US | |||
| CBD | 9.6 | 10.2 | 9.4 | 7.7 | 9.0 | 8.1 | 7.5 | 8.4 | 8.8 | 8.2 | ||
| Suburban | 9.8 | 10.1 | 9.6 | 8.0 | 9.0 | 8.2 | 7.8 | 8.6 | 8.8 | 8.4 | ||
| Warehouse | 9.2 | 9.9 | 9.3 | 7.8 | 8.5 | 8.2 | 7.6 | 8.3 | 8.8 | 8.3 | ||
| R&D | 9.4 | 10.3 | 9.7 | 8.0 | 9.0 | 8.6 | 8.0 | 8.5 | 9.2 | 8.6 | ||
| Flex | 9.5 | 9.5 | 9.6 | 8.0 | 9.0 | 8.0 | 7.9 | 8.6 | 8.7 | 8.5 | ||
| Regional Mall | 9.0 | 9.5 | 9.1 | 7.4 | 8.0 | 7.5 | 7.3 | 8.0 | 8.2 | 8.0 | ||
| Power Center | 9.4 | 9.6 | 9.4 | 7.8 | 8.5 | 7.8 | 7.6 | 8.4 | 8.4 | 8.2 | ||
| Neigh/Comm. | 9.7 | 10.3 | 9.5 | 8.1 | 9.0 | 8.4 | 7.8 | 8.6 | 9.0 | 8.5 | ||
| Apartment | 9.0 | 9.3 | 8.8 | 7.1 | 8.0 | 7.3 | 7.0 | 7.8 | 7.9 | 7.7 | ||
| Hotel | 10.4 | 11.1 | 10.6 | 8.9 | 11.0 | 9.3 | 8.8 | 9.5 | 9.7 | 9.4 | ||
| Average | 9.5 | 10.0 | No Data | 7.9 | 8.9 | 8.1 | No Data | 8.5 | 8.8 | No Data | ||
Indy Metro Transactions 3Q 2008
| Indianapolis, IN Transaction Data – 3Q 2008 – 12 Month Trailing | |||||
| < $5 million | > $5 million | All | Midwest Regional Total | National Total | |
| Office | |||||
| Volume (millions) | $15 | $204 | $218 | $10,561 | $97,521 |
| Size-Weighted Avg. ($/SF) | $46 | $102 | $94 | $130 | $241 |
| Price-Weighted Avg. ($/SF) | $75 | $108 | $105 | $174 | $456 |
| Median ($/SF) | $84 | $128 | $97 | $107 | $151 |
| Industrial | |||||
| Volume (millions) | $4 | $187 | $191 | $5,859 | $32,117 |
| Size-Weighted Avg. ($/SF) | $41 | $41 | $41 | $52 | $71 |
| Price-Weighted Avg. ($/SF) | $43 | $44 | $44 | $133 | $126 |
| Median ($/SF) | $52 | $44 | $45 | $50 | $75 |
| Retail | |||||
| Volume (millions) | $13 | $75 | $87 | $5,728 | $33,944 |
| Size-Weighted Avg. ($/SF) | $137 | $112 | $115 | $140 | $160 |
| Price-Weighted Avg. ($/SF) | $201 | $152 | $159 | $348 | $387 |
| Median ($/SF) | $116 | $190 | $147 | $104 | $137 |
| Apartment | |||||
| Volume (millions) | - | $405 | $411 | $5,445 | $58,388 |
| Size-Weighted Avg. ($/unit) | - | $49,241 | $49,147 | $65,744 | $100,771 |
| Price-Weighted Avg. ($/unit) | - | $54,793 | $54,637 | $96,998 | $190,045 |
| Median ($/unit) | - | $42,849 | $42,849 | $49,716 | $83,925 |
| Hotel | |||||
| Volume (millions) | - | $119 | $122 | $3,265 | $33,090 |
| Size-Weighted Avg. ($/unit) | - | $151,490 | $144,848 | $143,431 | $220,033 |
| Price-Weighted Avg. ($/unit) | - | $165,603 | $162,702 | $282,148 | $629,828 |
| Median ($/unit) | - | $134,318 | $134,318 | $60,909 | $104,651 |
| Source: RERC | |||||
