Commercial Investment Real Estate July/August 2016 | Page 9
Correction Ahead?
47 CRE execs picked the top 5 markets where
the bubble could burst this year:
1
San
Francisco
F
rancisco
Retail Value
2 4 5
3
New York
Chicago
Washington,
D.C.
Boston
Source: 2016 Real Confi dence Report
With cap rates ranging from 8 to 8.5 percent and strong rent
growth, these retail markets provide “sizable current income
at a reasonable price,” according to Marcus & Millichap’s 2016
National Retail Forecast. “Th is dynamic, combined with supply
increases of 1 percent or less this year, provides a robust margin of
safety for investment.”
2016 Retail Rent
Growth $psf
Louisville, Ky. 5.3% $13.43
Columbus, Ohio 3.9% $11.89
Charlotte, N.C. 3.4% $14.73
Market
Source: Marcus & Millichap
“Light distribution
facilities located
near or within
major metros are
growing more
popular with
users seeking to
meet consumer
demands for
same- and next-
day delivery of
goods.”
— CBRE Research
CCIM.com
U.S. Offi ce Market
Dashboard, 1Q16
Vacancy
Lease rate
Net absorption
Completions
13.2%
$30.38 psf
5.6 msf
6.9 msf
Source: CBRE
Multifamily NOI by
Complex Size
Size
More than 500 units
100 to 500 units
Less than 100 units
2015 NOI Growth
4.0%
6.1%
4.9%
Source: CoStar
July | August | 2016