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 | ||
