MARKETTRENDS
2011's Top 5 Commercial Lenders
Wells Fargo MetLife Real Estate Investments PNC Real Estate Deutsche Bank Commercial Real Estate Prudential Mortgage Capital
Source: Mortgage Bankers Association Dollar Stores Go Big
Spurred by consumers' continuing economic insecurity, the top three extreme-value retailers will add more than 1,200 stores in 2012, encouraging news for single-tenant net lease investors who like these credit-tenant properties with high yields. Deal volume increased 42 percent year over year, and the median sales price was up 9 percent to $102 psf, according to Marcus & Millichap, with capitalization rates averaging mid- to high 8 percent. Dollar General leads the expansion trend with 600 free-standing stores planned in mostly rural locations, where they face less potential competition from big-box retailers.
Who's Buying? Percentage of market share
CCIM Survey, 1Q2012
What types of non-retail tenants are leasing retail space?
"We are seeing dental, chiropractic, family medicine — small-offi ce tenants looking for more walk-ins and
parking associated with retail." — Chad Gleason, CCIM, Kent, Wash.
"Some retail is going for the rates of warehouse space, which opens it up to both offi ce and industrial users." — Joe W. Edge, CCIM, Augusta, Ga.
"For anchor boxes, higher education colleges with associate degree programs, churches, storage facilities,
and call centers." — Andrew Loveman, CCIM, Birmingham, Ala.
"Medical marijuana tenants and marijuana collective growers utilizing indoor agricultural techniques." — Gary N. Hunter, CCIM, Seattle
"Lots of requests from churches, and
in some cases, charter schools." — Brian Sorrentino, CCIM, Las Vegas
"Mortgage companies, wholesale distributor and show- room, professional offi ce, restaurants." — Paul F. Kenny, CCIM, Ketchum, Idaho
40 32.0 30 20 10 0
Private investors
Institutional buyers
Source: Real Capital Analytics
2011 Industrial Action Weighted averages
East
Midwest South West
0 20 40 $60 7.4 $72 7.5 $115 60 Source: RERC/CCIM Investment Trends Quarterly 1Q12 80 100 7.1 120
Price psf Cap rate (%) $101
7.1
Equity funds
Foreign capital
Other 19.3 16.0 14.2 11.4 13.0 8.7 37.0
2011 2010
19.7 28.7
10
May | June | 2012
Commercial Investment Real Estate