Indianapolis Metro – Commercial Real Estate Investment Criteria – 3Q 2010
| Indianapolis Investment Criteria Source: Real Estate Research Corporation |
|||||||||
| Pre-Tax Yield (%) | Going-In Cap Rate (%) | Terminal Cap Rate (%) | |||||||
| RERC Estimate |
Midwest Region |
US | RERC Estimate |
Midwest Region |
US | RERC Estimate |
Midwest Region |
US | |
| CBD | 10.0 | 10.5 | 9.6 | 8.1 | 8.4 | 8.0 | 8.8 | 9.0 | 8.7 |
| Suburban | 10.5 | 10.7 | 10.1 | 8.7 | 8.8 | 8.4 | 9.2 | 9.3 | 9.0 |
| Warehouse | 9.9 | 10.3 | 9.9 | 8.5 | 8.8 | 8.3 | 9.0 | 9.3 | 8.9 |
| R&D | 10.3 | 10.6 | 10.1 | 8.8 | 8.9 | 8.6 | 9.2 | 9.4 | 9.2 |
| Flex | 10.4 | 10.6 | 10.3 | 8.6 | 8.8 | 8.6 | 9.2 | 9.3 | 9.2 |
| Regional Mall | 9.9 | 10.1 | 9.9 | 8.6 | 8.6 | 8.1 | 9.1 | 9.3 | 8.8 |
| Power Center | 10.1 | 10.1 | 10.1 | 8.5 | 8.5 | 8.3 | 9.2 | 9.3 | 9.1 |
| Neigh/Comm. | 10.4 | 10.6 | 10.1 | 8.7 | 9.0 | 8.5 | 9.4 | 9.6 | 9.1 |
| Apartment | 9.2 | 9.4 | 9.2 | 7.4 | 7.7 | 7.4 | 8.0 | 8.2 | 7.9 |
| Hotel | 11.4 | 11.4 | 11.6 | 9.8 | 10.0 | 9.5 | 10.4 | 10.7 | 10.1 |
| Average | 10.2 | 10.4 | 10.1 | 8.6 | 8.8 | 8.4 | 9.2 | 9.3 | 9.0 |
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