Commercial Investment Real Estate March/April 2013 - Page 44

REGIONAL OUTLOOK NATIONAL The Big Deal Does Cerberus Capital Management’s $3.3 billion purchase of 877 grocery stores from SuperValu threaten the stability of grocery-anchored neighborhood centers? Market watchers predict the real estate management group will close stores in all of the fi ve regional chains it purchased: Albertsons, Acme, Jewel-Osco, Shaw’s, and Star Market. As many as 200 stores in neighborhood centers could shutter, with West Coast chain Albertsons seeing the most closures, said Terranomics research director Garrick Brown to CoStar. Other retail experts peg Pennsylvania-based Acme Supermarkets as a possible closure target. Of the fi ve chains, Chicago area Jewel-Osco is the strongest, with 33 percent of the local market. S O U T H Ä S O U T H Rent Growth Rock Stars Investment Trends, 4Q12 Southern cities posted solid of ce fundamentals in 4Q12 with Hous- ton (6.9%), Little Rock, Ark. (6.1%), and Dallas (5.6%) among the top 10 strongest markets for of ce rent growth in 4Q12, according to Cassidy Turley. Other secondary markets on the top 10 list include Salt Lake City Columbus, Ohio San Mateo County, Calif. Denver Source: Cassidy Turley 42 March | April | 2013 Ä 10.3% 8.5% 5.7% 5.0% SECTOR SOUTHEAST SOUTHWEST Cap rate Average psf Cap rate Average psf (%) ($) (%) ($) Offi ce 7.8 $145 7.2 $165 Industrial 8.1 $43 9.0 $76 Retail 8.0 $115 7.3 $142 Multifamily 6.6 $73,200 (per unit) 7.0 $91,045 (per unit) Source: National Association of Realtors Commercial Investment Real Estate