Can't Afford a Trophy Office Tower? Single-Tenant Properties May be an Alternative
National Real Estate Investor reports: After more than a year of intense competition among investors for the upper-crust properties of New York and Washington DC, National Real Estate Investor Online (NREI) recently identified a growing trend of non-institutional investors looking to acquire single-tenant triple-leased properties. Those opportunities – typically found outside primary markets and, thus, harder to locate – come with the safety of a long-term creditworthy tenant that is responsible for the property’s upkeep and insurance.
NREI cited data aggregated by Real Capital Analytics (RCA) to point out that single-tenant office properties in the US currently have a 7.9% initial cap rate, compared to just 6.5% for multi-tenant CBD office properties. The cap rate for single-tenant industrial properties is even higher, at 8.3%. NREI also pointed out via RCA data that the supply of single-tenant properties is growing, thereby reducing the price-down effect caused by competition, and sellers of single-tenant properties are achieving a larger percentage of their asking prices.
For more on this break-out trend, please see the full article on the National Real Estate Investor’s site.
View the full article on National Real Estate Investor: Can't Afford a Trophy Office Tower? Single-Tenant Properties May be an Alternative
Articles related to this topic:
The Manhattanization of Downtown L.A.
Multifamily Apartment Prices and Sales Volume Rising in Seattle
CommonWealth REIT Buying NOLA's Tallest Skyscraper
UDR Rapidly Expanding in Manhattan
Can CRE Activity Sustain Through the Macroeconomic Shocks?
CMBS Pipeline Narrowing after US T-Bond Downgrade
Office Tower Duo Sells in Seattle for $480M , Confirming Interest in Trophy Assets Still Strong
Soho Retail Trailing Meatpacking District's High Line Rent Rates
Private Equity Firms Grow their CRE Investment War-chests
Pension Funds Reevaluate as Trophy Property Pool Dries Up
Florida Investors Still Playing it Safe with Focus on Core Properties
Europe's Leading Markets Still Magnetizing Investment Capital
North Carolina Triangle a Favorite Alternative to Primary Markets
Love of the Didgeridoo, or Higher Yields, Attracts Cross-Border Capital Back to Oz
Suburban Long Island Complex Flips after Successful Repositioning
Hines Sells Chicago's 3 First National Plaza for Nearly $350 Mil.
Posted by: Nina Turner