Commercial Investment Real Estate July/August 2018 | Page 42

REGIONAL
OUTLOOK
{ MID-AT L A NTIC }
Washington, D.C.’s
Big Deal
Less than three years after its $84 million
purchase of One Dulles Tower, a 403,600-sf
property in Herndon, Va., Federal Capital Partners
sold the property for $226 million to Harbor Group
International LLC. The 17-year-old building has
been fully occupied by Amazon Web Services since
2017. FCP invested about $11 million in renovating
and respositioning the 13-story building and was
assisted in the sale by Cushman & Wakefield.
{ N ATION A L}
{MIDWEST}
Top Five U.S. Metro Areas
Multifamily Cap Rate Trends
Highest Apartment Occupancy 2017
96.9% (Down 20 bps YOY)
Los Angeles South 96.2% (Down 30 bps YOY)
Orange County, California 96.1% (Down 30 bps YOY)
Milwaukee 96.1% (Up 20 bps YOY)
Detroit 96.0% (Down 10 bps YOY)
Two Ohio cities — Columbus and Cincinnati — had the highest
multifamily cap rates in 1Q2018; Boston and New York City, the
lowest. Figures are based on expected average ranges for Class
A CBD assets.
City
Minneapolis
Source: Berkadia National Multifamily Research Report Forecast 2018
Columbus, Ohio
Cincinnati
Pittsburgh
San Antonio
Nashville, Tenn.
Raleigh-Durham, N.C.
South Florida
San Diego
Boston
New York City
Cap Rate Range %
6.00% - 6.90%
6.00% - 6.80%
5.75% - 6.50%
5.00% - 6.25%
4.75% - 5.25%
4.75% - 5.10%
4.30% - 5.30%
4.00% - 4.50%
3.50% - 5.50%
3.30% - 4.30%
Source: JLL
{WEST}
East Bay area was strong during the first quarter of 2018, according to Kidder Mathews. Rents for state-of-the-art spaces have jumped
20 percent over the last 12 months and have attracted investors from around the country, particularly along I-880. Rents for bulk
industrial spaces larger than 100,000 sf continue to rise above $1 psf; average rents for flex spaces range from $1.65 to $1.75 psf.
40
July | August 2018
COMMERCIAL INVESTMENT REAL ESTATE
Industrial Demand Strong in East Bay Demand for industrial properties in California’s