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Phil Mangieri is a Partner at Restaurant Research LLC - a research firm which provides clients with valuable restaurant store level benchmarking data for $1B+ chains. RR data, which is obtained through our extensive network of restaurant industry players, is used by clients to maximize unit... More
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  • Cap Rates Hit Recent Lows As Real Estate Market Heats-Up 0 comments
    Aug 29, 2012 1:54 PM

    Restaurant Research LLC

    ChainRestaurantData.com

    (click to enlarge)

    Cap Rates Hit Recent Lows as Real Estate Market Heats-Up

    • Lower cap rates, lower rents and higher acquisition activity suggest that the retail commercial real estate market is heating-up as market participants currently seem more inclined to buy than rent.
    • Cap rates seem to be following the same trend as last year - down slightly in the first 4 months of the year followed by a sharper decline in months 5-6.
    • This resulted in the lowest cap rates since the onset of the 2008 recession at the end of June.
    • Capitalized rents appear to be declining as indicated by -13% reduction in median price/s.f. from 2H11 to 1H12.
    • Transaction activity was up sharply during 1H12 with more deals completed during any 6 month time frame since 2008.

    (click to enlarge)

    Source: Marcus & Millichap

    About the Contributing Firm: The Nisbet Group is a member of the National Retail Group of Marcus & Millichap which specializes in representing institutional and private companies in the disposition of multi-tenant and single tenant retail properties. Please contact Peter Nisbet, Vice President of Investments, Senior Director, National Retail Group - pnisbet@marcusmillichap.com or call (206) 826-5700 ext. 5718.

    Make Restaurant Research your outsourced research department. Leverage our extensive network and expertise at a fraction of what it would cost for you to do your own due diligence/business intelligence/benchmarking the right way. For more information, please contact us at (203) 938-4703 or pmangieri@ChainRestaurantData.com.

    Copyright 2012 Restaurant Research® LLC. All rights reserved.

    Disclaimer of Liability: Although the information in this report has been obtained from sources Restaurant Research® LLC believes to be reliable, RR does not guarantee its accuracy. The views expressed herein are subject to change without notice and in no case can be considered as an offer or solicitation with regard to the purchase or sales of any securities. Restaurant Research's analyses and opinions are not a guarantee of the future performance of any company or individual franchisee. RR disclaims all liability for any misstatements or omissions that occur in the publication of this report. In making this report available, no client, advisory, fiduciary or professional relationship is implied or established. This report is intended to provide an overview of the restaurant industry, but cannot be used as a substitute for independent investigations and sound business judgment.

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