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