Commercial Investment Real Estate November/December 2019 | Page 10

MARKET
TRENDS
Caps for QSR
Cap rates for quick service restaurant properties remained steady from July 2018 to July 2019.
The rates still varied across the country, with the national average at 5.74 percent.
Northeast
5.95%
West
Midwest
Mid-Atlantic
5.95%
California
4.59%
5.66%
Southwest
5.68%
Southeast
South
6.12%
6.18%
Florida
5.48%
Source: Calkain
Briefly Noted
Land Use: You already know
about pop-up stores, but GlobeSt.
com notes a new concept: pop-up
parks. Globe St. defines the parks
as “instant open area[s] ready for
public use and programming,” but
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November | Decmber 2019
of two of the sites told the Chicago
Tribune. “You’ll put a mailroom and a
property management office there or
sometimes a fitness room. Whereas
if you get a library in there, every
inch of that ground floor is active and
public and inviting people in.”
municipalities and developers across
the country are interpreting the con-
cept in a variety of ways. Some are
temporary spaces used for events
and programs during a construction
project; others are used as trial bal-
loons to gauge community response
to urban land use.
Hospitality: A recent Urban Land
Institute report noted that the hos-
pitality sector spends an average of
$2,196 per guest room and 6 percent
of total operating costs on energy
each year, totaling $7 billion annu-
ally. Steps to improve sustainability in
water, energy, waste, and land usage
can generate immediate returns, but
ULI’s Sustainability in Hotels: Oppor-
tunities and Trends Shaping the
Future of Hospitality, notes “much of
the hotel industry is leaving valuable
operational and technical opportuni-
ties for savings and efficiency on the
table.” The report describes cur-
rent methods that hotel owners and
developers can use — whether build-
ing new or retrofitting — and reports
on future trends, including materials
selection, modular construction, and
technology updates.
Mixed-Use: Several cities around
the country now boast library-
apartment complexes. Chicago, for
example, has three new versions of
the hybrid, including two affordable
seniors buildings and a mixed-
income building. “A lot of times
the first floor is underutilized in a
residential building,” the developer
Multifamily: The growth of
e-commerce has presented a
challenge to apartment building
developers and managers. As
the flow of deliveries increases to
apartment buildings, managers
are “tasked with finding new and
creative ways to meet the demand
for package storage, sorting, and
security,” says Rick Haughey, vice
president of the National Multifamily
Housing Council, to the Associated
Press. Some companies, such as
Amazon, offer off-site lockers for
pickup; other companies have sprung
up to provide on-site lockers or take
delivery of packages and deliver
them directly to residents. One other
complaint: waste-management
issues, thanks to the volume of
packaging materials and boxes.
COMMERCIAL INVESTMENT REAL ESTATE
5.43%