What would a target CAP rate for an investor with >$500,000,000 Net Worth look like today versus 3 years ago?

I have an investor who wishes to hedge current US portfolio of residential eco-development property with long-term sale/leaseback agreements on single or 2/3 tenant commercial or industrial property. His preference would be 10,000 sq. ft or larger and his liquidity position should open doors to higher returns. Suggestions on market direction as my experience is showing 1-3 digit CAP increases
In Buying Property - Asked by Josh W. - Oct 9, 2008
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Answer(s)

Glen W.
Lender/Mortgage Broker
Atlanta, GA

Josh.. with credit tighening, Cap rates are definitely rising. In Colorado, I am seeing retail centers that used to trade on a 7 cap, now trading at and 8 or 9 cap. The cap for the particular center you reference is going to be highly dependent on the local market. For example in a strong market like Bozeman, MT, cap rates have not adjusted much as opposed to a market like Miami. Good luck with your transaction. i wrote a blog about rising cap rates. It is definitely a wild ride in this real estate market.

Oct 10, 2008
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Gregory G.
Broker/Agent
San Francisco, CA

3 digit cap increases?
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Gregory Garver - Commercial Real Estate Broker
Broker License# 01716531
(415)968-6065
greg@nnnbrokersusa.com
http://www.gregorygarver.com

Jun 12, 2011
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