Midwest Region - ccim.comweighted average price was slightly higher in the Midwest region than...
Transcript of Midwest Region - ccim.comweighted average price was slightly higher in the Midwest region than...
Chicago • Cincinnati • Cleveland • Columbus • Detroit • Indianapolis Kansas City • Milwaukee • Minneapolis • Omaha • St. Louis • Toledo
Midwest Region
94Investment TrendsQuarterly
Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute.
MidwestRegionTransactionBreakdown
Regional Transaction Price Breakdown/TiersMidwest Transaction Breakdown (7/1/07 - 6/30/08)
Office Industrial Retail Apartment Hotel< $2 MillionVolume (Mil) $359 $694 $712 $275 $31
Size Weighted Avg. ($ per sf/unit) $69 $38 $70 $30,812 $19,750
Price Weighted Avg. ($ per sf/unit) $96 $55 $109 $42,000 $23,230
Median ($ per sf/unit) $71 $42 $69 $34,286 $19,418
$2 - $5 MillionVolume (Mil) $529 $1,113 $1,145 $464 $208
Size Weighted Avg. ($ per sf/unit) $99 $44 $106 $41,376 $33,272
Price Weighted Avg. ($ per sf/unit) $150 $71 $210 $57,071 $37,082
Median ($ per sf/unit) $116 $55 $172 $45,704 $34,211
> $5 MillionVolume (Mil) $12,000 $4,734 $6,491 $4,995 $3,511
Size Weighted Avg. ($ per sf/unit) $147 $61 $173 $77,423 $154,686
Price Weighted Avg. ($ per sf/unit) $190 $156 $337 $137,581 $233,732
Median ($ per sf/unit) $134 $62 $163 $66,348 $134,318
All TransactionsVolume (Mil) $12,888 $6,540 $8,349 $5,734 $3,751
Size Weighted Avg. ($ per sf/unit) $140 $54 $143 $67,737 $122,812
Price Weighted Avg. ($ per sf/unit) $185 $131 $300 $126,484 $221,055
Median ($ per sf/unit) $102 $48 $99 $44,418 $56,448
Capitalization Rates (All Transactions)Range (%) 4.3 - 9.6 5.4 - 11.7 5.0 - 11.0 4.5 - 10.0 6.8 - 12.0
Weighted Avg. (%) 6.6 8.0 6.2 6.5 7.6
Median (%) 7.4 8.2 7.0 7.1 8.8 Source: RERC.
nCCIM designees and candidates rated the Midwest re-gionaleconomyat4.9onascaleof1to10,with10beinghigh,duringsecondquarter2008.This ratingwas lowerthan the first quarter rating of 5.6, but like the ratings for theotherregionaleconomies,washigherthantheratingforthenationaleconomy.
nThe Midwest region’s size-weighted average prices persquarefoot/unitforallpropertytypeswerelowerthanthenational averages during second quarter 2008. In addi-
tion,theMidwestregionalweighted-averagecapitalizationrates were higher than those for the national market, ex-cept for the retailsector,where the rate for theMidwestregionwas30basispointslower.
nAlthoughthetotaldollarvolumeofcommercialrealestatetransactionsdecreased forallproperty types in theMid-westregionduringsecondquarter2008,thedecreaseinvolumewasnotassevereasthatintheotherregions.
“The best investment opportunities are in
student, affordable, and senior housing.”
– Detroit
“Avoid hotels. Corporate cost cutting will increase
vacancy levels.”– Chicago
“I’d recommend the suburban office
market. The product is underpriced compared to
replacement costs,as suburban office rents
are still low.”– Chicago
“Invest in anything in stable, local markets with
decent job growth.”– Kansas City
OfficePropertySector
95Investment TrendsQuarterly
Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute.
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RERC Price-Weighted Avg. PPSF - 2Q 2008
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Avg. Capitalization Rate
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RERC Weighted Avg. Cap Rate - 2Q 2008
Midwest Office Transactions (7/1/07 - 6/30/08)Volume
(millions)Size-weighted Average ($/sf)
Price-weighted Average ($/sf)
Median($/sf)
Average Cap Rate (%)
Chicago $6,258 $190 $232 $142 6.0
Cincinnati $64 $96 $135 $86 7.0
Cleveland $851 $115 $124 $84 7.7
Columbus $353 $97 $128 $105 8.5
Detroit $1,093 $97 $117 $101 8.4
Indianapolis $150 $84 $95 $82 8.0
Kansas City $461 $150 $183 $119 7.1
Milwaukee $347 $128 $154 $76 7.6
Minneapolis $1,186 $116 $137 $124 7.4
Omaha $61 $68 $107 $56 7.2
St. Louis $1,021 $132 $157 $124 7.7
Toledo $119 $67 $108 $77 –
Midwest Total $12,888 $140 $185 $102 6.6
U.S. Total $109,372 $227 $417 $145 5.6 Source: RERC.
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RERC Size-Weighted Avg. PPSF - 2Q 2008
nAccording to second quarter 2008 survey respondents,the Midwest regional office sector is soft with low rental rates,andthesize-andprice-weightedaveragepricespersquarefootdeclinedfromthepreviousquarter.
nTransaction volume of Midwest regional office properties declinedforthethirdconsecutivequarter.
Midwest
96Investment TrendsQuarterly
Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute.
IndustrialPropertySector
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RERC Price-Weighted Avg. PPSF - 2Q 2008
6%
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RERC Weighted Avg. Cap Rate - 2Q 2008
Midwest Industrial Transactions (7/1/07 - 6/30/08)Volume
(millions)Size-weighted Average ($/sf)
Price-weighted Average ($/sf)
Median($/sf)
Average Cap Rate (%)
Chicago $2,276 $57 $79 $65 7.6
Cincinnati $198 $46 $59 $42 7.8
Cleveland $348 $45 $60 $43 7.2
Columbus $285 $38 $45 $43 8.9
Detroit $338 $52 $81 $49 8.8
Indianapolis $103 $39 $44 $42 8.1
Kansas City $276 $68 $114 $49 –
Milwaukee $149 $43 $72 $50 7.7
Minneapolis $507 $60 $88 $58 7.9
Omaha $56 $52 $78 $45 –
St. Louis $433 $53 $71 $59 –
Toledo $19 $38 $43 $35 –
Midwest Total $6,540 $54 $131 $48 8.0
U.S. Total $39,252 $71 $129 $73 6.9 Source: RERC.
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RERC Size-Weighted Avg. PPSF - 2Q 2008
nThesecondquarter2008size-weightedaveragepricepersquarefootof industrialspacewaslowerintheMidwestregion than that for the national market, while the price-weightedaveragepricewasslightlyhigherintheMidwestregion than nationally.The weighted average capitaliza-tionrateforindustrialpropertiesintheMidwestregionwas110 basis points higher than that for the national market.
nWhilethesize-weightedaveragepricepersquarefootofindustrialspaceintheMidwestregionwasaboutthesameasthat for thepreviousquarter, theprice-weightedpricepersquarefootincreasedgreatlyinsecondquarter2008.TheweightedaveragecapitalizationrateforMidwestre-gionalindustrialpropertiesincreased30basispointsoverlastquarter.
Midwest
97Investment TrendsQuarterly
Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute.
RetailPropertySector
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RERC Price-Weighted Avg. PPSF - 2Q 2008
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RERC Weighted Avg. Cap Rate - 2Q 2008
Midwest Retail Transactions (7/1/07 - 6/30/08)Volume
(millions)Size-weighted Average ($/sf)
Price-weighted Average ($/sf)
Median($/sf)
Average Cap Rate (%)
Chicago $4,056 $224 $429 $170 5.6
Cincinnati $269 $133 $178 $87 6.9
Cleveland $276 $97 $128 $75 8.4
Columbus $234 $137 $177 $100 –
Detroit $322 $129 $157 $102 7.8
Indianapolis $81 $76 $111 $70 –
Kansas City $335 $116 $177 $86 –
Milwaukee $157 $119 $190 $73 7.0
Minneapolis $369 $113 $173 $93 6.9
Omaha $70 $52 $130 $88 8.2
St. Louis $684 $180 $205 $119 7.2
Toledo $28 $67 $93 $78 –
Midwest Total $8,349 $143 $300 $99 6.2
U.S. Total $46,283 $153 $278 $130 6.5 Source: RERC.
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RERC Size-Weighted Avg. PPSF - 2Q 2008
nMostCCIMdesigneesandcandidatesstatedthattheretailmarket offered the worst investment opportunities among the commercial property sectors in the Midwest regionbecauseofthesloweconomyandreduceddiscretionaryspending.
nThevolumeofretailpropertytransactionsdeclinedslightlyin the Midwest regional market during second quarter 2008. Thesize-weightedaveragepricepersquarefootdeclined,whiletheprice-weightedaverageincreasedslightly.
Midwest
98Investment TrendsQuarterly
Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute.
ApartmentPropertySector
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RERC Price-Weighted Avg. PPU - 2Q 2008
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RERC Weighted Avg. Cap Rate - 2Q 2008
Midwest Apartment Transactions (7/1/07 - 6/30/08)Volume
(millions)Size-weighted
Average ($/unit)Price-weighted Average ($/unit)
Median($/sf)
Average Cap Rate (%)
Chicago $1,911 $112,746 $159,546 $69,413 5.7
Cincinnati $241 $46,007 $55,931 $27,000 5.5
Cleveland $159 $41,948 $57,939 $38,000 7.7
Columbus $559 $50,469 $59,610 $42,792 6.7
Detroit $355 $49,014 $64,277 $37,797 7.1
Indianapolis $241 $62,033 $73,912 $71,725 7.5
Kansas City $252 $57,949 $73,257 $37,901 7.0
Milwaukee $80 $54,957 $76,878 $49,917 –
Minneapolis $280 $69,003 $83,702 $61,835 6.9
Omaha $133 $64,467 $74,236 $43,025 –
St. Louis $109 $45,387 $57,265 $36,667 –
Toledo $124 $60,580 $69,252 $44,395 7.1
Midwest Total $5,734 $67,737 $126,484 $44,418 6.5
U.S. Total $62,642 $99,669 $180,830 $82,876 5.8 Source: RERC.
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RERC Size-Weighted Avg. PPU - 2Q 2008
nThemajorityof thesecondquarter2008survey respon-dentscommented thatapartmentswere thebest invest-ment opportunity in the Midwest regional property market because the weak housing market continues to cause high-erdemandforapartmentrentalunits.Thesize-andprice-weightedaveragesfortheapartmentsectorincreasedinboth the Midwest regional market and the national market duringsecondquarter.
nThevolumeofsecondquarter2008apartmentsalesintheMidwest region was 15 percent less than last quarter, and nearly30percentlessthanyear-agolevels.TheweightedaveragecapitalizationratefortheMidwestapartmentsec-tor remained at 6.5 percent, while the median capitaliza-tionratedecreasedslightly.
Midwest
99Investment TrendsQuarterly
Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute.
HotelPropertySector
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RERC Price-Weighted Avg. PPU - 2Q 2008
Midwest Hotel Transactions (7/1/07 - 6/30/08)Volume
(millions)Size-weighted
Average ($/unit)Price-weighted Average ($/unit)
Median($/sf)
Average Cap Rate (%)
Chicago $1,822 $205,172 $312,189 $89,063 7.0
Cincinnati $218 $118,180 $169,601 $134,318 –
Cleveland $293 $140,749 $195,461 $105,831 –
Columbus $176 $74,177 $115,212 $43,187 9.5
Detroit $109 $77,008 $103,555 $62,684 –
Indianapolis $122 $144,848 $162,702 $134,318 7.2
Kansas City $251 $109,131 $137,069 $102,536 8.6
Milwaukee $107 $80,979 $96,782 $69,213 –
Minneapolis $124 $87,700 $109,258 $67,889 12.0
Omaha – – – – –
St. Louis $199 $90,634 $118,408 $68,973 –
Toledo $16 $40,442 $45,160 $40,036 –
Midwest Total $3,751 $122,812 $221,055 $56,448 7.6
U.S. Total $38,464 $199,059 $558,637 $100,515 7.5 Source: RERC.
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RERC Size-Weighted Avg. PPU - 2Q 2008
nTheaveragesize-weightedpriceperhotelunitincreasedslightlyfortheMidwestregionduringsecondquarter2008,while the price-weighted average and median price perunitdeclinedgreatlyfromlastquarter.
nTheweightedaverageandmediancapitalizationratesde-creasedforthehotelsectorintheMidwestregionduringsecondquarter2008.
Midwest
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RERC Weighted Avg. Cap Rate - 2Q 2008
Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute.Investment TrendsQuarterly
MidwestMarketSnapshot
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Midwest Region Space MarketOffice - 2Q-2008
Inventory SF (000s) Vacancy Rate (%) Net Absorption SF (000s) Asking Rents ($/SF)
Chicago 220,635 15.2 213 $18.67 Net
Cincinnati 34,650 17.5 201 $14.64 Gross
Cleveland 37,054 16.0 -35 $16.27 Gross
Columbus 28,840 16.6 -181 $11.42 Net
Detroit 71,457 21.7 -63 $19.25 Gross
Indianapolis 30,478 15.8 240 $17.21 Gross
Kansas City 47,089 14.0 -131 $17.44 Gross
Minneapolis 63,390 14.3 605 $13.58 Net
St. Louis 40,561 14.3 123 $18.52 Gross
Toledo 14,671 17.0 -94 $15.13 Gross
Industrial - 2Q-2008
Inventory SF (000s) Availability Rate (%) Net Absorption SF (000s) Asking Rents ($/SF)
Chicago 1,051,567 11.5 -4,371 $5.41 Net
Cincinnati 288,326 9.1 -3,116 $4.07 Net
Cleveland 305,549 9.7 -832 $4.04 Net
Columbus 247,188 14.1 -812 $3.59 Net
Detroit 476,857 17.4 -600 $5.10 Net
Indianapolis 269,931 10.9 902 $4.31 Gross
Kansas City 234,356 7.5 1,728 $4.15 Gross
Minneapolis 321,025 8.7 -730 $6.28 Net
St. Louis 270,155 11.1 -930 $4.39 Net
Retail - 2Q-2008
Inventory SF (000s) Availability Rate (%) Net Absorption SF (000s) Asking Rents ($/SF)
Chicago 95,032 11.6 217 $5.41
Cincinnati 21,379 12.5 140 $4.07
Cleveland 14,687 13.7 -22 $4.04
Columbus 18,183 16.3 -10 $3.59
Detroit 31,791 17.2 -313 $5.10
Indianapolis 20,702 13.8 68 $4.31
Kansas City 27,469 13.5 21 $4.15
Minneapolis 26,997 7.3 -6 $6.28
St. Louis 33,502 12.2 110 $4.39
Space Market Data has been provided courtesy of Torto Wheaton Research. Analysis within this report is solely compiled and produced by the Real Estate Research Corporation, and in no way reflects the interpretations, opinions, or conclusions of Torto Wheaton Research.
Trusted Advice. Proven Performance.
RERC extends its appreciation to CBRE/Torto Wheaton Research, whichcontributed all of the space market information on this page.
CBRE/TortoWheatonResearch isafull-service researchand investmentadvisory firm, specializing in com-mercial real estate markets.
With over 20 years of experience, our industry leading research, mar-ket expertise, and strategic partner-shipsprovideclientswithtacticalad-viceandstrategicdirectiontoidentifymarket opportunities that enhance performance and manage risk.
CBRE/TWR is internationally rec-ognized for our solid foundation ineconomics,accurate forecasts,ana-lytical expertise, and providing clients withunparalleled insight intothedy-namics of the real estate market that impactperformance.
William WheatonPh.D., Principal
Jon SouthardPrincipal
James CostelloPrincipal
Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute.Investment TrendsQuarterly
101
Demographics & Economics
Population Unemployment Rate (June 2008)
Chicago MSA 9.8 million Chicago2 7.1%
Chicago Growth1 0.98% Illinois2 7.1%
National Growth1 1.23% National2 5.5%
Household Income & Value
Per Capita Income $31,743 2008 Households 3.5 million
1-year Job Growth 0.90% Household Growth 0.94%
1-year Job Additions 40,300 Median Home Price $241,285
Major Employers
Abbot Laboratories
U.S. Post Office
University of Chicago
Northern Trust Bank FSB
CNA Financial Corp.Sources: Bureau of Labor Statistics, NAR, STDB Online.“Home Price Analysis Report for Chicago Region – 2007” ©2007 NATIONAL ASSOCIATION OF REAL-TORS®. Used with permission. Reproduction, reprinting, or retransmission of this document in any form (electronic media included) is prohibited without written permission.1Projected annual growth over 5 years (2007-2012). 2Rates are non-seasonally adjusted.
Noteworthy Transactions
Sale Date Sale Price Sq. Ft./Units PPSF/PPU
Office
675 N. Field Dr. 4-08 $45,000,000 273,000 $165
Parkway North 6-08 $169,000,000 740,000 $228
Industrial
401 E. Touhy Ave. 4-08 $28,500,000 155,193 $184
440 Medinah Rd. 4-08 $25,760,000 318,221 $81
Retail
300-310 N. Michigan Ave. 5-08 $31,300,000 273,262 $115
225 E. Grand Ave. 5-08 $22,500,000 50,664 $444
Apartment
Woodlake 5-08 $34,250,000 260 $131,731
Avalon at West Grove 6-08 $38,700,000 400 $96,750
Hotel
Purple Hotel 5-08 $27,000,000 293 $92,150
Amerisuites 4-08 $10,300,000 126 $81,746Compiled by RERC for the RERC/CCIM Investment Trends Quarterly report.
Market Construction/Redevelopment Activity
Property Type
New(N)/Refurbished(R)
Total Sq. Ft./Units
Estimated Delivery
IKEA Distribution Center Industrial N 650,000 2009
208 S. LaSalle Hotel R 610 2010
215 W. Washington St. Multifamily N 389 2010
155 N. Wacker Dr. Office N 1,100,000 2009
Sunrise of Lombard Multifamily N 140 2009Sources: CBRE, RE Business.
Chi
ca
go Metro Trend Analysis Last
QuarterPrevious
Year
Office
Size-Weighted Average PPSF
Weighted Average Cap Rate
Industrial
Size-Weighted Average PPSF
Weighted Average Cap Rate
Retail
Size-Weighted Average PPSF
Weighted Average Cap Rate
Apartment
Size-Weighted Average PPU
Weighted Average Cap Rate
Hotel
Size-Weighted Average PPU
Weighted Average Cap Rate
Metro Cap Rate Comparison* Current Quarter
Office
vs. Midwest Region
vs. Nation
Industrial
vs. Midwest Region
vs. Nation
Retail
vs. Midwest Region
vs. Nation
Apartment
vs. Midwest Region
vs. Nation
Hotel
vs. Midwest Region
vs. Nation
*Comparison of current quarter weighted average capitalization rates.Source: RERC.
Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute.Investment TrendsQuarterly
102
Chicago Transaction Breakdown (7/1/07 - 6/30/08)Office Industrial Retail Apartment Hotel
< $5 MillionVolume (Mil) $197 $571 $512 $185 $38
Size Weighted Avg. ($ per sf/unit) $111 $56 $133 $61,799 $33,322
Price Weighted Avg. ($ per sf/unit) $155 $77 $222 $73,641 $37,690
Median ($ per sf/unit) $115 $66 $148 $60,465 $31,634
> $5 MillionVolume (Mil) $6,061 $1,705 $3,543 $1,726 $1,784
Size Weighted Avg. ($ per sf/unit) $194 $58 $249 $123,649 $230,486
Price Weighted Avg. ($ per sf/unit) $234 $79 $459 $168,735 $318,034
Median ($ per sf/unit) $162 $62 $205 $95,909 $134,318
All TransactionsVolume (Mil) $6,258 $2,276 $4,056 $1,911 $1,822
Size Weighted Avg. ($ per sf/unit) $190 $57 $224 $112,746 $205,172
Price Weighted Avg. ($ per sf/unit) $232 $79 $429 $159,546 $312,189
Median ($ per sf/unit) $142 $65 $170 $69,413 $89,063
Capitalization Rates (All Transactions)Weighted Average (%) 6.0 7.6 5.6 5.7 7.0
Median (%) 6.8 7.8 7.0 5.8 7.0 Source: RERC.
Chicago
HistoricalMedianPriceperSquareFoot(12monthtrailing)–OFFICE
HistoricalMedianPriceperSquareFoot(12monthtrailing)–RETAIL
HistoricalMedianPriceperSquareFoot(12monthtrailing)–INDUSTRIAL
Please note that in order to more accurately reflect 12-month trail-ing average trends, scales are unique to each chart and for each property type and do not carry over from one chart to another.
HistoricalMedianPriceperUnit(12monthtrailing)–APARTMENT
Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute.Investment TrendsQuarterly
103
Demographics & Economics
Population Unemployment Rate (June 2008)
Cincinnati MSA 2.1 million Cincinnati2 6.0%
Cincinnati Growth1 0.87% Ohio2 6.7%
National Growth1 1.23% National2 5.5%
Household Income & Value
Per Capita Income $30,538 2008 Households 840,843
1-year Job Growth 0.10% Household Growth 0.95%
1-year Job Additions 1,500 Median Home Price $143,773
Major Employers
Procter & Gamble Co.
University of Cincinnati
GE Aviation
Valentine Research Inc.
RJS Sales & MarketingSources: Bureau of Labor Statistics, NAR, STDB Online.“Home Price Analysis Report for Cincinnati Region – 2007” ©2007 NATIONAL ASSOCIATION OF REAL-TORS®. Used with permission. Reproduction, reprinting, or retransmission of this document in any form (electronic media included) is prohibited without written permission. 1Projected annual growth over 5 years (2007-2012). 2Rates are non-seasonally adjusted.
Noteworthy Transactions
Sale Date Sale Price Sq. Ft./Units PPSF/PPU
Office
4700 E. Galbraith Rd. 6-08 $15,500,000 65,226 $238
4190 Harrison Ave. 5-08 $600,000 10,200 $59
Industrial
2850 Earhart 4-08 $9,000,000 218,064 $41
8085 Production Dr. 4-08 $3,050,000 48,440 $63
Retail
7800 Montgomery Rd. 4-08 $92,200,000 390,218 $236
Florence Marketplace 5-08 $6,300,000 24,913 $253
Apartment
McCauly Crossing 6-08 $20,250,000 264 $76,705
Grandview Summit 5-08 $15,500,000 192 $80,729
Hotel
2100 Dixie Highway 6-08 $4,100,000 214 $19,159Compiled by RERC for the RERC/CCIM Investment Trends Quarterly report.
Market Construction/Redevelopment Activity
Property Type
New(N)/Refurbished(R) Total Sq. Ft./Units
Estimated Delivery
Springhill Suites Hotel N 123 2009
Queen City Square Tower Office N 825,000 2011
The Banks Mixed Use N
300,000 Office
201070,000 Retail
400-unit Mult.Sources: CBRE, RE Business.
Cin
cin
nati Metro Trend Analysis Last
QuarterPrevious
Year
Office
Size-Weighted Average PPSF
Industrial
Size-Weighted Average PPSF
Weighted Average Cap Rate
Retail
Size-Weighted Average PPSF
Weighted Average Cap Rate =
Apartment
Size-Weighted Average PPU
Hotel
Size-Weighted Average PPU
Metro Cap Rate Comparison* Current Quarter
Office
vs. Midwest Region
vs. Nation
Industrial
vs. Midwest Region
vs. Nation
Retail
vs. Midwest Region
vs. Nation
Apartment
vs. Midwest Region
vs. Nation
*Comparison of current quarter weighted average capitalization rates.Source: RERC.
Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute.Investment TrendsQuarterly
104
Cincinnati Transaction Breakdown (7/1/07 - 6/30/08)Office Industrial Retail Apartment Hotel
< $5 MillionVolume (Mil) $22 $69 $46 $46 –
Size Weighted Avg. ($ per sf/unit) $89 $36 $89 $28,030 –
Price Weighted Avg. ($ per sf/unit) $107 $47 $138 $32,144 –
Median ($ per sf/unit) $86 $41 $79 $25,000 –
> $5 MillionVolume (Mil) $42 $129 $223 $194 $207
Size Weighted Avg. ($ per sf/unit) $100 $53 $149 $54,349 $173,696
Price Weighted Avg. ($ per sf/unit) $150 $66 $186 $61,624 $177,257
Median ($ per sf/unit) $126 $51 $145 $54,741 $161,131
All TransactionsVolume (Mil) $64 $198 $269 $241 $218
Size Weighted Avg. ($ per sf/unit) $96 $46 $133 $46,007 $118,180
Price Weighted Avg. ($ per sf/unit) $135 $59 $178 $55,931 $169,601
Median ($ per sf/unit) $86 $42 $87 $27,000 $134,318
Capitalization Rates (All Transactions)Weighted Average (%) 7.0 7.8 6.9 5.5 –
Median (%) 6.8 7.9 7.0 5.4 – Source: RERC.
Cincinnati
HistoricalMedianPriceperSquareFoot(12monthtrailing)–OFFICE
HistoricalMedianPriceperSquareFoot(12monthtrailing)–RETAIL
HistoricalMedianPriceperSquareFoot(12monthtrailing)–INDUSTRIAL
Please note that in order to more accurately reflect 12-month trail-ing average trends, scales are unique to each chart and for each property type and do not carry over from one chart to another.
Footnotes:1The decline was due in part to a num-ber of smaller retail transactions.
1
Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute.Investment TrendsQuarterly
105
Demographics & Economics
Population Unemployment Rate (June 2008)
Cleveland MSA 2.1 million Cleveland2 7.7%
Cleveland Growth1 -0.08% Ohio2 6.7%
National Growth1 1.23% National2 5.5%
Household Income & Value
Per Capita Income $29,070 2008 Households 862,890
1-year Job Growth – Household Growth 0.10%
1-year Job Additions – Median Home Price $137,062
Major Employers
Cleveland Clinic Foundation
University Hospital of Cleveland
Key Bank
Money Mart
Progressive Corp.Sources: Bureau of Labor Statistics, NAR, STDB Online.1Projected annual growth over 5 years (2007-2012). 2Rates are non-seasonally adjusted.
Noteworthy Transactions
Sale Date Sale Price Sq. Ft./Units PPSF/PPU
Office
One Cleveland Center 6-08 $86,300,000 541,505 $159
North Point Tower 6-08 $123,700,000 878,000 $141
Industrial
7528 Auburn Rd. 4-08 $15,175,000 242,165 $63
8181 Darrow Rd. 5-08 $9,200,000 257,000 $36
Retail
Shoregate Shopping Center 5-08 $16,863,000 226,487 $74
11706 Clifton Blvd. 6-08 $2,415,000 11,560 $209
Apartment
Willo Arms 6-08 $24,000,000 740 $32,432
Highland Woods 5-08 $26,800,000 661 $40,545
Hotel
795 Mondial Pkwy. 4-08 $5,000,000 95 $52,632Compiled by RERC for the RERC/CCIM Investment Trends Quarterly report.
Cle
vela
ndMetro Trend Analysis Last
QuarterPrevious
Year
Office
Size-Weighted Average PPSF
Weighted Average Cap Rate
Industrial
Size-Weighted Average PPSF
Retail
Size-Weighted Average PPSF
Apartment
Size-Weighted Average PPU
Weighted Average Cap Rate
Hotel
Size-Weighted Average PPU
Metro Cap Rate Comparison* Current Quarter
Office
vs. Midwest Region
vs. Nation
Industrial
vs. Midwest Region
vs. Nation
Retail
vs. Midwest Region
vs. Nation
Apartment
vs. Midwest Region
vs. Nation
*Comparison of current quarter weighted average capitalization rates.Source: RERC.
Market Construction/Redevelopment Activity
Property Type
New(N)/Refurbished(R)
Total Sq. Ft./Units
Estimated Delivery
Estancia Executive Center Phase III Office N 90,000 2009
Hotel Indigo Hotel N N/A 2010
The Flats Mixed Use N N/A 2010
Ameritrust Complex Mixed Use R370
Rooms N/A450,000
Sources: CBRE, RE Business.
Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute.Investment TrendsQuarterly
106
Cleveland Transaction Breakdown (7/1/07 - 6/30/08)Office Industrial Retail Apartment Hotel
< $5 MillionVolume (Mil) $79 $151 $104 $58 –
Size Weighted Avg. ($ per sf/unit) $77 $36 $81 $35,663 –
Price Weighted Avg. ($ per sf/unit) $105 $50 $129 $43,798 –
Median ($ per sf/unit) $75 $39 $70 $35,714 –
> $5 MillionVolume (Mil) $773 $197 $172 $100 $290
Size Weighted Avg. ($ per sf/unit) $121 $55 $111 $46,722 $145,967
Price Weighted Avg. ($ per sf/unit) $126 $68 $128 $66,138 $196,894
Median ($ per sf/unit) $120 $64 $115 $43,518 $135,008
All TransactionsVolume (Mil) $851 $348 $276 $159 $293
Size Weighted Avg. ($ per sf/unit) $115 $45 $97 $41,948 $140,749
Price Weighted Avg. ($ per sf/unit) $124 $60 $128 $57,939 $195,461
Median ($ per sf/unit) $84 $43 $75 $38,000 $105,831
Capitalization Rates (All Transactions)Weighted Average (%) 7.7 7.2 8.4 7.7 –
Median (%) 8.4 7.5 8.5 5.4 –Source: RERC.
Cleveland
HistoricalMedianPriceperSquareFoot(12monthtrailing)–OFFICE
HistoricalMedianPriceperSquareFoot(12monthtrailing)–RETAIL
HistoricalMedianPriceperSquareFoot(12monthtrailing)–INDUSTRIAL
Please note that in order to more accurately reflect 12-month trail-ing average trends, scales are unique to each chart and for each property type and do not carry over from one chart to another.
Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute.Investment TrendsQuarterly
107
Demographics & Economics
Population Unemployment Rate (June 2008)
Columbus MSA 1.8 million Columbus2 5.7%
Columbus Growth1 1.16% Ohio2 6.7%
National Growth1 1.23% National2 5.5%
Household Income & Value
Per Capita Income $30,841 2008 Households 712,802
1-year Job Growth 0.60% Household Growth 1.24%
1-year Job Additions 6,000 Median Home Price $148,828
Major Employers
Ohio State University
State of Ohio Department of Corrections
Riverside Methodist Hospital
Defense Supply Center
Hines Interest LTD PartnershipSources: Bureau of Labor Statistics, NAR, STDB Online.“Home Price Analysis Report for Columbus Region – 2007” ©2007 NATIONAL ASSOCIATION OF REAL-TORS®. Used with permission. Reproduction, reprinting, or retransmission of this document in any form (electronic media included) is prohibited without written permission.1Projected annual growth over 5 years (2007-2012). 2Rates are non-seasonally adjusted.
Noteworthy Transactions
Sale Date Sale Price Sq. Ft./Units PPSF/PPU
Office
485 Metro Place S. 6-08 $11,000,000 96,876 $114
5200 Upper Metro Place 5-08 $10,000,000 96,000 $104
Industrial
Kellogg’s 4-08 $51,000,000 1,200,000 $43
5255 Centerpoint Pkwy. 4-08 $18,800,000 516,025 $36
Retail
Walgreens 4-08 $7,292,625 22,748 $321
Park Place Center 5-08 $11,900,000 106,833 $111
Apartment
Northwoods 6-08 $16,000,000 280 $57,143
Hidden Acres East 6-08 $3,600,000 84 $42,857
Hotel
Knights Inn 5-08 $1,290,000 75 $17,200Compiled by RERC for the RERC/CCIM Investment Trends Quarterly report.
Co
lum
bus Metro Trend Analysis Last
QuarterPrevious
Year
Office
Size-Weighted Average PPSF
Industrial
Size-Weighted Average PPSF
Retail
Size-Weighted Average PPSF
Apartment
Size-Weighted Average PPU
Weighted Average Cap Rate =
Hotel
Size-Weighted Average PPU
Metro Cap Rate Comparison* Current Quarter
Office
vs. Midwest Region
vs. Nation
Industrial
vs. Midwest Region
vs. Nation
Apartment
vs. Midwest Region
vs. Nation
Hotel
vs. Midwest Region
vs. Nation
*Comparison of current quarter weighted average capitalization rates.Source: RERC.
Market Construction/Redevelopment Activity
Property Type
New(N)/Refurbished(R)
Total Sq. Ft./Units
Estimated Delivery
Franklin County Courthouse Office N 325,000 2010
Embassy Suites Hotel N 185 2009
Albany Park Retail N 300,000 2009Sources: CBRE, RE Business.
Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute.Investment TrendsQuarterly
108
Columbus Transaction Breakdown (7/1/07 - 6/30/08)Office Industrial Retail Apartment Hotel
< $5 MillionVolume (Mil) $94 $93 $64 $37 $27
Size Weighted Avg. ($ per sf/unit) $82 $43 $120 $27,276 $34,707
Price Weighted Avg. ($ per sf/unit) $119 $55 $219 $36,837 $39,400
Median ($ per sf/unit) $103 $45 $76 $31,719 $38,699
> $5 MillionVolume (Mil) $259 $192 $170 $522 $149
Size Weighted Avg. ($ per sf/unit) $104 $37 $145 $53,676 $93,638
Price Weighted Avg. ($ per sf/unit) $132 $41 $162 $61,210 $129,068
Median ($ per sf/unit) $117 $42 $214 $64,976 $134,318
All TransactionsVolume (Mil) $353 $285 $234 $559 $176
Size Weighted Avg. ($ per sf/unit) $97 $38 $137 $50,469 $74,177
Price Weighted Avg. ($ per sf/unit) $128 $45 $177 $59,610 $115,212
Median ($ per sf/unit) $105 $43 $100 $42,792 $43,187
Capitalization Rates (All Transactions)Weighted Average (%) 8.5 8.9 – 6.7 9.5
Median (%) 7.1 7.9 – 7.0 7.0 Source: RERC.
Columbus
HistoricalMedianPriceperSquareFoot(12monthtrailing)–OFFICE
Please note that in order to more accurately reflect 12-month trailing average trends, scales are unique to each chart and for each property type and do not carry over from one chart to another.
HistoricalMedianPriceperSquareFoot(12monthtrailing)–INDUSTRIAL
Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute.Investment TrendsQuarterly
109
Demographics & Economics
Population Unemployment Rate (June 2008)
Detroit MSA 4.6 million Detroit2 9.7%
Detroit Growth1 0.24% Michigan2 8.7%
National Growth1 1.23% National2 5.5%
Household Income & Value
Per Capita Income $31,368 2008 Households 1.8 million
1-year Job Growth – Household Growth 0.33%
1-year Job Additions – Median Home Price $145,931
Major Employers
Rehabilitation Institute of Michigan
Detroit Receiving Hospital
Wayne State University
General Motors Corp.
DTE EnergySources: Bureau of Labor Statistics, NAR, STDB Online.1Projected annual growth over 5 years (2007-2012). 2Rates are non-seasonally adjusted.
Noteworthy Transactions
Sale Date Sale Price Sq. Ft./Units PPSF/PPU
Office
Renaissance Center 5-08 $626,000,000 5,500,000 $114
40 Oak Hollow Rd. 6-08 $12,500,000 81,000 $154
Industrial
40600 Plymouth Rd. 5-08 $9,400,000 259,351 $36
31077 Durr Dr. 5-08 $6,600,000 117,709 $56
Retail
Oakland Pointe 5-08 $15,000,000 212,564 $71
36485 Garfield Rd. 5-08 $2,990,000 11,180 $267
Apartment
8430 E. Jefferson 4-08 $1,800,000 152 $11,842Compiled by RERC for the RERC/CCIM Investment Trends Quarterly report.
De
tro
it Metro Trend Analysis Last Quarter
Previous Year
Office
Size-Weighted Average PPSF
Industrial
Size-Weighted Average PPSF
Weighted Average Cap Rate
Retail
Size-Weighted Average PPSF
Weighted Average Cap Rate
Apartment
Size-Weighted Average PPU
Weighted Average Cap Rate =
Hotel
Size-Weighted Average PPU
Metro Cap Rate Comparison* Current Quarter
Office
vs. Midwest Region
vs. Nation
Industrial
vs. Midwest Region
vs. Nation
Retail
vs. Midwest Region
vs. Nation
Apartment
vs. Midwest Region
vs. Nation
*Comparison of current quarter weighted average capitalization rates.Source: RERC.
Market Construction/Redevelopment Activity
Property Type
New(N)/Refurbished(R)
Total Sq. Ft./Units
Estimated Delivery
Cameron Court Senior VillageApartments Multifamily N 48 2009
Market Strategies International Office N 60000 2009Sources: CBRE, RE Business.
Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute.Investment TrendsQuarterly
110
Detroit Transaction Breakdown (7/1/07 - 6/30/08)Office Industrial Retail Apartment Hotel
< $5 MillionVolume (Mil) $51 $82 $77 $27 $17
Size Weighted Avg. ($ per sf/unit) $88 $36 $116 $24,076 $28,622
Price Weighted Avg. ($ per sf/unit) $120 $72 $183 $31,014 $29,841
Median ($ per sf/unit) $107 $45 $101 $28,136 $28,032
> $5 MillionVolume (Mil) $1,042 $256 $244 $328 $92
Size Weighted Avg. ($ per sf/unit) $97 $61 $133 $53,635 $112,823
Price Weighted Avg. ($ per sf/unit) $117 $84 $148 $67,043 $117,397
Median ($ per sf/unit) $98 $66 $147 $58,013 $119,791
All TransactionsVolume (Mil) $1,093 $338 $322 $355 $109
Size Weighted Avg. ($ per sf/unit) $97 $52 $129 $49,014 $77,008
Price Weighted Avg. ($ per sf/unit) $117 $81 $157 $64,277 $103,555
Median ($ per sf/unit) $101 $49 $102 $37,797 $62,684
Capitalization Rates (All Transactions)Weighted Average (%) 8.4 8.8 7.8 7.1 –
Median (%) 7.2 9.0 6.8 7.2 –Source: RERC.
Detroit
HistoricalMedianPriceperSquareFoot(12monthtrailing)–OFFICE
HistoricalMedianPriceperSquareFoot(12monthtrailing)–RETAIL
HistoricalMedianPriceperSquareFoot(12monthtrailing)–INDUSTRIAL
Please note that in order to more accurately reflect 12-month trail-ing average trends, scales are unique to each chart and for each property type and do not carry over from one chart to another.
Footnotes:1The increase was due to the sale of 124 W. William St. for $190/sf.1
HistoricalMedianPriceperUnit(12monthtrailing)–APARTMENT
Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute.Investment TrendsQuarterly
111
Demographics & Economics
Population Unemployment Rate (June 2008)
Indianapolis MSA 1.7 million Indianapolis2 5.2%
Indianapolis Growth1 1.67% Indiana2 5.8%
National Growth1 1.23% National2 5.5%
Household Income & Value
Per Capita Income $31,623 2008 Households 682,316
1-year Job Growth 1.60% Household Growth 1.71%
1-year Job Additions 14,600 Median Home Price $140,641
Major Employers
Eli Lilly & Co.
Peyton Manning’s Childrens Hospital
Indiana University – Purdue University
Indy Honda
Rolls-Royce Corp.Sources: Bureau of Labor Statistics, NAR, STDB Online.“Home Price Analysis Report for Indianapolis Region – 2007” ©2007 NATIONAL ASSOCIATION OF REAL-TORS®. Used with permission. Reproduction, reprinting, or retransmission of this document in any form (electronic media included) is prohibited without written permission.1Projected annual growth over 5 years (2007-2012). 2Rates are non-seasonally adjusted.
Noteworthy Transactions
Sale Date Sale Price Sq. Ft./Units PPSF/PPU
Office
Epler Park Building B. 4-08 $5,850,000 34,000 $172
8649 Commerce Park Place 5-08 $1,350,000 20,000 $68
Industrial
Panattoni I & II 6-08 $45,300,000 1,133,570 $40
Park 100 Industrial Park 5-08 $72,400,000 1,875,619 $39
Retail
Eastgate Consumer Mall 5-08 $26,000,000 370,000 $70
Noble West Shoppes 5-08 $18,300,000 59,085 $310
Apartment
Riverchase Apartments 5-08 $14,500,000 216 $67,130
Mann Village 4-08 $14,000,000 336 $41,667
Hotel
36 W. Rampart St. 4-08 $3,200,000 58 $55,172Compiled by RERC for the RERC/CCIM Investment Trends Quarterly report.
Market Construction/Redevelopment Activity
Property Type
New(N)/Refurbished(R)
Total Sq. Ft./Units
Estimated Delivery
Ralston Square Mixed Use N 41,000 2009
Harlem Furniture Retail N 63,000 N/A
INTECH Four Office N 150,000 2009
Hilton Garden Inn Hotel N 122 N/A
Cosmopolitan on the Canal Multifamily N 218 N/ASources: CBRE, RE Business.
Ind
iana
po
lis Metro Trend Analysis Last Quarter
Previous Year
Office
Size-Weighted Average PPSF
Industrial
Size-Weighted Average PPSF
Retail
Size-Weighted Average PPSF
Apartment
Size-Weighted Average PPU
Hotel
Size-Weighted Average PPU
Metro Cap Rate Comparison* Current Quarter
Office
vs. Midwest Region
vs. Nation
Industrial
vs. Midwest Region
vs. Nation
Apartment
vs. Midwest Region
vs. Nation
Hotel
vs. Midwest Region
vs. Nation
*Comparison of current quarter weighted average capitalization rates.Source: RERC.
Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute.Investment TrendsQuarterly
112
Indianapolis Transaction Breakdown (7/1/07 - 6/30/08)Office Industrial Retail Apartment Hotel
< $5 MillionVolume (Mil) $16 $6 $16 – –
Size Weighted Avg. ($ per sf/unit) $46 $35 $137 – –
Price Weighted Avg. ($ per sf/unit) $73 $39 $196 – –
Median ($ per sf/unit) $67 $46 $103 – –
> $5 MillionVolume (Mil) $134 $97 $65 $239 $119
Size Weighted Avg. ($ per sf/unit) $93 $39 $68 $62,311 $151,490
Price Weighted Avg. ($ per sf/unit) $98 $45 $90 $74,159 $165,603
Median ($ per sf/unit) $85 $41 $69 $71,725 $134,318
All TransactionsVolume (Mil) $150 $103 $81 $241 $122
Size Weighted Avg. ($ per sf/unit) $84 $39 $76 $62,033 $144,848
Price Weighted Avg. ($ per sf/unit) $95 $44 $111 $73,912 $162,702
Median ($ per sf/unit) $82 $42 $70 $71,725 $134,318
Capitalization Rates (All Transactions)Weighted Average (%) 8.0 8.1 – 7.5 7.2
Median (%) 7.0 8.1 – 7.8 9.3 Source: RERC.
Indianapolis
Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute.Investment TrendsQuarterly
113
Demographics & Economics
Population Unemployment Rate (June 2008)
Kansas City MSA 2 million Kansas City2 5.9%
Kansas City Growth1 1.26% Missouri2 6.0%
National Growth1 1.23% National2 5.5%
Household Income & Value
Per Capita Income $30,632 2008 Households 798,510
1-year Job Growth 2.10% Household Growth 1.31%
1-year Job Additions 20,400 Median Home Price $146,793
Major Employers
Hallmark Cards Inc.
Kansas City City Hall
U.S. Health & Human Services Department
University of Missouri-Kansas City (UMKC)
DST TechnologiesSources: Bureau of Labor Statistics, NAR, STDB Online.“Home Price Analysis Report for Kansas City Region – 2007” ©2007 NATIONAL ASSOCIATION OF REAL-TORS®. Used with permission. Reproduction, reprinting, or retransmission of this document in any form (electronic media included) is prohibited without written permission.1Projected annual growth over 5 years (2007-2012). 2Rates are non-seasonally adjusted.
Noteworthy Transactions
Sale Date Sale Price Sq. Ft./Units PPSF/PPU
Office
4901 College Blvd. 6-08 $8,500,000 22,000 $386
Bank of America Operations Center 4-08 $36,100,000 310,000 $116
Industrial
Kimberly Clark Distribution Center 6-08 $20,000,000 446,500 $45
Airworld Distribution Center 6-08 $7,300,000 187,600 $39
Retail
3400 NW. Jefferson St. 5-08 $3,281,250 70,089 $47
Prairie Shopping Center 6-08 $5,500,000 21,306 $258
Apartment
4601 Broadway St. 4-08 $17,350,000 106 $163,679
The Arbors of Grandview 4-08 $7,800,000 298 $26,174
Hotel
Marriott Country Club Plaza Hotel 4-08 $52,800,000 295 $178,983
Residence Inn 4-08 $17,400,000 106 $164,151Compiled by RERC for the RERC/CCIM Investment Trends Quarterly report.
Market Construction/Redevelopment Activity
Property Type
New(N)/Refurbished(R)
Total Sq. Ft./Units
Estimated Delivery
7501 NW 106th Terrace Industrial N 400,000 N/A
Corporate Woods Building 83 Office N 350,000 2009
417 E. 13th St. Office R 40,542 N/A
Kansas City Intl. Airport Warehouse Industrial N 500,000 N/ASources: CBRE, RE Business.
Kans
as
City
Metro Trend Analysis Last Quarter
Previous Year
Office
Size-Weighted Average PPSF
Weighted Average Cap Rate = =
Industrial
Size-Weighted Average PPSF
Retail
Size-Weighted Average PPSF
Apartment
Size-Weighted Average PPU
Weighted Average Cap Rate =
Hotel
Size-Weighted Average PPU
Metro Cap Rate Comparison* Current Quarter
Office
vs. Midwest Region
vs. Nation
Apartment
vs. Midwest Region
vs. Nation
Hotel
vs. Midwest Region
vs. Nation
*Comparison of current quarter weighted average capitalization rates.Source: RERC.
Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute.Investment TrendsQuarterly
114
Kansas City Transaction Breakdown (7/1/07 - 6/30/08)Office Industrial Retail Apartment Hotel
< $5 MillionVolume (Mil) $25 $88 $148 $28 –
Size Weighted Avg. ($ per sf/unit) $80 $38 $85 $29,783 –
Price Weighted Avg. ($ per sf/unit) $122 $77 $169 $32,038 –
Median ($ per sf/unit) $64 $48 $74 $31,100 –
> $5 MillionVolume (Mil) $437 $187 $187 $224 $240
Size Weighted Avg. ($ per sf/unit) $157 $109 $163 $65,728 $117,185
Price Weighted Avg. ($ per sf/unit) $187 $131 $184 $78,415 $141,159
Median ($ per sf/unit) $140 $60 $154 $47,606 $118,456
All TransactionsVolume (Mil) $461 $276 $335 $252 $251
Size Weighted Avg. ($ per sf/unit) $150 $68 $116 $57,949 $109,131
Price Weighted Avg. ($ per sf/unit) $183 $114 $177 $73,257 $137,069
Median ($ per sf/unit) $119 $49 $86 $37,901 $102,536
Capitalization Rates (All Transactions)Weighted Average (%) 7.1 – – 7.0 8.6
Median (%) 7.3 – – 7.1 9.3 Source: RERC.
Kansas City
HistoricalMedianPriceperSquareFoot(12monthtrailing)–OFFICE
HistoricalMedianPriceperUnit(12monthtrailing)–APARTMENT
HistoricalMedianPriceperSquareFoot(12monthtrailing)–INDUSTRIAL
Please note that in order to more accurately reflect 12-month trail-ing average trends, scales are unique to each chart and for each property type and do not carry over from one chart to another.
Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute.Investment TrendsQuarterly
115
Demographics & Economics
Population Unemployment Rate (June 2008)
Milwaukee MSA 1.5 million Milwaukee2 5.3%
Milwaukee Growth1 0.22% Wisconsin2 4.9%
National Growth1 1.23% National2 5.5%
Household Income & Value
Per Capita Income $31,329 2008 Households 615,382
1-year Job Growth 1.50% Household Growth 0.38%
1-year Job Additions 12,800 Median Home Price $194,481
Major Employers
Wheaton Franciscan Healthcare
University of Wisconsin
General Mitchell International
Northern Chocolate Co.
Northwestern Mutual InvestmentSources: Bureau of Labor Statistics, NAR, STDB Online. “Home Price Analysis Report for Milwaukee Region – 2007” ©2007 NATIONAL ASSOCIATION OF REAL-TORS®. Used with permission. Reproduction, reprinting, or retransmission of this document in any form (electronic media included) is prohibited without written permission. 1Projected annual growth over 5 years (2007-2012). 2Rates are non-seasonally adjusted.
Noteworthy Transactions
Sale Date Sale Price Sq. Ft./Units PPSF/PPU
Office
111 E. Kilbourn Ave. 6-08 $53,000,000 373,516 $142
21675 Longview Dr. 4-08 $3,030,000 16,673 $182
Industrial
5100 W Brown Deer Rd. 5-08 $3,550,000 128,000 $28
1725 Dolphin Dr. 5-08 $3,300,000 50,250 $66
Retail
1202 N. Green Bay Rd. 5-08 $10,500,000 59,162 $177
11300 N. Port Washington Rd. 5-08 $10,900,000 42,330 $258
Apartment
17465 W. River Birch Dr. 5-08 $15,800,000 95 $166,316
2011 E. Park Pl. 5-08 $1,110,000 17 $65,294
Hotel
Hospitality Inn & Suites 5-08 $6,950,000 192 $36,198
1150 Oakes Rd. 5-08 $2,200,000 61 $36,066Compiled by RERC for the RERC/CCIM Investment Trends Quarterly report.
Market Construction/Redevelopment Activity
Property Type
New(N)/Refurbished(R)
Total Sq. Ft./Units
Estimated Delivery
Pabst Farms Town Centre Retail N 1,000,000 2010
1200 W. Sunset Dr. Retail N 4,500,000 2009
The Shoppes at Fox River Retail N 498,500 N/A
1824 E. Park Place Multifamily N 61 2009
Sleep Inn & Suites Hotel N 82 2009Sources: CBRE, RE Business.
Milw
auk
ee Metro Trend Analysis Last
QuarterPrevious
Year
Office
Size-Weighted Average PPSF
Industrial
Size-Weighted Average PPSF
Retail
Size-Weighted Average PPSF
Weighted Average Cap Rate = =
Apartment
Size-Weighted Average PPU
Hotel
Size-Weighted Average PPU
Metro Cap Rate Comparison* Current Quarter
Office
vs. Midwest Region
vs. Nation
Industrial
vs. Midwest Region
vs. Nation
Retail
vs. Midwest Region
vs. Nation
Apartment
vs. Midwest Region
vs. Nation
Hotel
vs. Midwest Region
vs. Nation
*Comparison of current quarter weighted average capitalization rates.Source: RERC.
Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute.Investment TrendsQuarterly
116
Milwaukee Transaction Breakdown (7/1/07 - 6/30/08)Office Industrial Retail Apartment Hotel
< $5 MillionVolume (Mil) $40 $73 $78 $31 –
Size Weighted Avg. ($ per sf/unit) $74 $43 $87 $50,586 –
Price Weighted Avg. ($ per sf/unit) $96 $54 $168 $56,658 –
Median ($ per sf/unit) $70 $50 $68 $50,833 –
> $5 MillionVolume (Mil) $306 $76 $78 $49 $102
Size Weighted Avg. ($ per sf/unit) $142 $43 $185 $58,194 $86,710
Price Weighted Avg. ($ per sf/unit) $162 $88 $211 $89,893 $99,882
Median ($ per sf/unit) $142 $55 $211 $42,381 $77,412
All TransactionsVolume (Mil) $347 $149 $157 $80 $107
Size Weighted Avg. ($ per sf/unit) $128 $43 $119 $54,957 $80,979
Price Weighted Avg. ($ per sf/unit) $154 $72 $190 $76,878 $96,782
Median ($ per sf/unit) $76 $50 $73 $49,917 $69,213
Capitalization Rates (All Transactions)Weighted Average (%) 7.6 7.7 7.0 – –
Median (%) 7.7 6.1 7.1 – –Source: RERC.
Milwaukee
Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute.Investment TrendsQuarterly
117
Demographics & Economics
Population Unemployment Rate (June 2008)
Minneapolis MSA 3.3 million Minneapolis2 5.1%
Minneapolis Growth1 1.34% Minnesota2 5.3%
National Growth1 1.23% National2 5.5%
Household Income & Value
Per Capita Income $36,619 2008 Households 1.3 million
1-year Job Growth 0.90% Household Growth 1.38%
1-year Job Additions 15,700 Median Home Price $220,838
Major Employers
University of Minnesota
Fairview University Medical Center
UPS
Target Stores Inc.
Carlson Companies Inc.Sources: Bureau of Labor Statistics, NAR, STDB Online.“Home Price Analysis Report for Minneapolis Region – 2007” ©2007 NATIONAL ASSOCIATION OF REAL-TORS®. Used with permission. Reproduction, reprinting, or retransmission of this document in any form (electronic media included) is prohibited without written permission.1Projected annual growth over 5 years (2007-2012). 2Rates are non-seasonally adjusted.
Noteworthy Transactions
Sale Date Sale Price Sq. Ft./Units PPSF/PPU
Office
Crosstown Corporate Center 5-08 $10,580,000 60,000 $176
Rosedale Towers 5-08 $8,600,000 86,077 $100
Industrial
770-800 Kasota Ave. 4-08 $12,604,175 318,006 $40
6403 & 6507 Cecilia Dr. 4-08 $10,380,000 161,368 $64
Retail
Savage Town Square 6-08 $14,050,000 87,181 $161
2039 Robert St. S. 6-08 $16,000,000 163,162 $98
Apartment
3305-3433 53rd Ave. N. 5-08 $12,000,000 610 $19,672
415 Erie St. SE 6-08 $8,800,000 122 $72,131
Hotel
Westgate Inn 4-08 $5,100,000 83 $61,446Compiled by RERC for the RERC/CCIM Investment Trends Quarterly report.
Market Construction/Redevelopment Activity
Property Type
New(N)/Refurbished(R)
Total Sq. Ft./Units
Estimated Delivery
The Manning Ave. Project Mixed Use N 25,264,486 2030
Syngenta Headquarters Office N 110,000 N/A
Hampton Inn & Suites Hotel N 124 2009
Excelsior Crossings in Hopkins Office N 450,000 2010
Boulder Lakes Office III Industrial N 116,000 N/ASources: CBRE, RE Business.
Min
nea
po
lisMetro Trend Analysis Last
QuarterPrevious
Year
Office
Size-Weighted Average PPSF
Weighted Average Cap Rate
Industrial
Size-Weighted Average PPSF
Retail
Size-Weighted Average PPSF
Weighted Average Cap Rate
Apartment
Size-Weighted Average PPU
Hotel
Size-Weighted Average PPU
Metro Cap Rate Comparison* Current Quarter
Office
vs. Midwest Region
vs. Nation
Industrial
vs. Midwest Region
vs. Nation
Retail
vs. Midwest Region
vs. Nation
Apartment
vs. Midwest Region
vs. Nation
Hotel
vs. Midwest Region
vs. Nation
*Comparison of current quarter weighted average capitalization rates.Source: RERC.
Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute.Investment TrendsQuarterly
118
Minneapolis Transaction Breakdown (7/1/07 - 6/30/08)Office Industrial Retail Apartment Hotel
< $5 MillionVolume (Mil) $70 $160 $154 $57 –
Size Weighted Avg. ($ per sf/unit) $115 $54 $91 $56,072 –
Price Weighted Avg. ($ per sf/unit) $152 $79 $152 $66,009 –
Median ($ per sf/unit) $111 $57 $78 $55,167 –
> $5 MillionVolume (Mil) $1,115 $346 $215 $223 $114
Size Weighted Avg. ($ per sf/unit) $116 $63 $135 $73,368 $101,049
Price Weighted Avg. ($ per sf/unit) $136 $92 $189 $88,265 $115,896
Median ($ per sf/unit) $126 $63 $154 $78,472 $101,420
All TransactionsVolume (Mil) $1,186 $507 $369 $280 $124
Size Weighted Avg. ($ per sf/unit) $116 $60 $113 $69,003 $87,700
Price Weighted Avg. ($ per sf/unit) $137 $88 $173 $83,702 $109,258
Median ($ per sf/unit) $124 $58 $93 $61,835 $67,889
Capitalization Rates (All Transactions)Weighted Average (%) 7.4 7.9 6.9 6.9 12.0
Median (%) 7.3 7.9 6.8 5.8 7.0 Source: RERC.
Minneapolis
HistoricalMedianPriceperSquareFoot(12monthtrailing)–INDUSTRIAL
HistoricalMedianPriceperUnit(12monthtrailing)–APARTMENT
HistoricalMedianPriceperSquareFoot(12monthtrailing)–RETAIL
Please note that in order to more accurately reflect 12-month trail-ing average trends, scales are unique to each chart and for each property type and do not carry over from one chart to another.
Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute.Investment TrendsQuarterly
119
Demographics & Economics
Population Unemployment Rate (June 2008)
Omaha MSA 851,000 Omaha2 3.8%
Omaha Growth1 1.28% Nebraska2 3.4%
National Growth1 1.23% National2 5.5%
Household Income & Value
Per Capita Income $28,952 2008 Households 331,300
1-year Job Growth - Household Growth 1.39%
1-year Job Additions - Median Home Price $138,154
Major Employers
UNMC Physicians Ent.
First Data Resources Inc.
Mutual of Omaha Insurance Co.
Con Agra Foods Inc.
Union Pacific Railroad Co.Sources: Bureau of Labor Statistics, NAR, STDB Online.1Projected annual growth over 5 years (2007-2012). 2Rates are non-seasonally adjusted.
Noteworthy Transactions
Sale Date Sale Price Sq. Ft./Units PPSF/PPU
Office
13132 Davenport St. 5-08 $1,500,000 8,000 $188
Industrial
10802 Farnam Dr. 5-08 $5,500,000 61,120 $90
8951 S. 126th St. 4-08 $1,370,000 51,000 $27
Retail
8502-8546 Granville Pkwy. 5-08 $12,030,000 564,045 $21
14304 W. Maple Rd. 4-08 $8,200,000 70,032 $117
Apartment
8500 Granville Pkwy. 5-08 $12,020,000 276 $43,551
10923 Old Mill Ct. 5-08 $9,247,000 248 $37,286Compiled by RERC for the RERC/CCIM Investment Trends Quarterly report.
Om
aha
Metro Trend Analysis Last Quarter
Previous Year
Office
Size-Weighted Average PPSF
Industrial
Size-Weighted Average PPSF
Retail
Size-Weighted Average PPSF
Apartment
Size-Weighted Average PPU
Metro Cap Rate Comparison* Current Quarter
Office
vs. Midwest Region
vs. Nation
Retail
vs. Midwest Region
vs. Nation
*Comparison of current quarter weighted average capitalization rates.Source: RERC.
Market Construction/Redevelopment Activity
Property Type
New(N)/Refurbished(R)
Total Sq. Ft./Units
Estimated Delivery
Midtown Crossing at Turner Park Mixed Use N 1,000,000 2009
Homes Instead Senior Care HQ Office N 60,000 N/A
Westplex III Office N 107,500 N/A
Aksarben Village Office N 154,000 N/ASources: CBRE, RE Business.
Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute.Investment TrendsQuarterly
120
Omaha Transaction Breakdown (7/1/07 - 6/30/08)Office Industrial Retail Apartment Hotel
< $5 MillionVolume (Mil) $10 $27 $44 $13 –
Size Weighted Avg. ($ per sf/unit) $64 $36 $66 $48,600 –
Price Weighted Avg. ($ per sf/unit) $92 $60 $164 $64,142 –
Median ($ per sf/unit) $55 $40 $82 $39,193 –
> $5 MillionVolume (Mil) $50 – – $120 –
Size Weighted Avg. ($ per sf/unit) $69 – – $66,864 –
Price Weighted Avg. ($ per sf/unit) $110 – – $75,344 –
Median ($ per sf/unit) $98 – – $75,256 –
All TransactionsVolume (Mil) $61 $56 $70 $133 –
Size Weighted Avg. ($ per sf/unit) $68 $52 $52 $64,467 –
Price Weighted Avg. ($ per sf/unit) $107 $78 $130 $74,236 –
Median ($ per sf/unit) $56 $45 $88 $43,025 –
Capitalization Rates (All Transactions)Weighted Average (%) 7.2 – 8.2 – –
Median (%) 7.2 – 9.1 – –Source: RERC.
Omaha
HistoricalMedianPriceperSquareFoot(12monthtrailing)–INDUSTRIAL
Please note that in order to more accurately reflect 12-month trailing average trends, scales are unique to each chart and for each property type and do not carry over from one chart to another.
Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute.Investment TrendsQuarterly
121
Demographics & Economics
Population Unemployment Rate (June 2008)
St. Louis MSA 2.9 million St. Louis2 6.5%
St. Louis Growth1 0.74% Missouri2 6.0%
National Growth1 1.23% National2 5.5%
Household Income & Value
Per Capita Income $29,450 2008 Households 1.1 million
1-year Job Growth 1.30% Household Growth 0.82%
1-year Job Additions 18,000 Median Home Price $144,085
Major Employers
St. Louis University
ABM Industries Inc.
Anheuser-Busch Co. Inc.
ABM Industries
A. G. Edwards & Sons Inc.Sources: Bureau of Labor Statistics, NAR, STDB Online.“Home Price Analysis Report for St. Louis Region – 2007” ©2007 NATIONAL ASSOCIATION OF REAL-TORS®. Used with permission. Reproduction, reprinting, or retransmission of this document in any form (electronic media included) is prohibited without written permission.1Projected annual growth over 5 years (2007-2012). 2Rates are non-seasonally adjusted.
Noteworthy Transactions
Sale Date Sale Price Sq. Ft./Units PPSF/PPU
Office
National City Center 4-08 $49,500,000 293,874 $168
Solutia HQ 6-08 $42,750,000 257,250 $166
Industrial
131 Enterprise Dr. 6-08 $5,300,000 65,000 $82
Ford Assembly Plant 6-08 $20,000,000 523,161 $38
Retail
Saint Peters Square 6-08 $16,300,000 110,149 $148
Bakewell Real Estate 4-08 $6,500,000 10,800 $602
Apartment
Oak Park Village 6-08 $18,000,000 758 $23,747
Park Commons 4-08 $14,200,000 174 $81,609
Hotel
Holiday Inn Select 5-08 $6,600,000 195 $33,846Compiled by RERC for the RERC/CCIM Investment Trends Quarterly report.
Market Construction/Redevelopment Activity
Property Type
New(N)/Refurbished(R)
Total Sq. Ft./Units
Estimated Delivery
Lemp Brewery Complex Mixed Use R75,000 SF
& 400 Units 2012
13610 Riverport Drive Office N 146,000 2009
6177 Delmar Boulevard Hotel N 124 2009
Villa Lighting Warehouse Industrial N 206,288 2009
The Meadows at LakeSt. Louis Retail N 260,000 2009Sources: CBRE, RE Business.
St. L
oui
s Metro Trend Analysis Last Quarter
Previous Year
Office
Size-Weighted Average PPSF
Industrial
Size-Weighted Average PPSF
Retail
Size-Weighted Average PPSF
Weighted Average Cap Rate =
Apartment
Size-Weighted Average PPU
Hotel
Size-Weighted Average PPU
Metro Cap Rate Comparison* Current Quarter
Office
vs. Midwest Region
vs. Nation
Retail
vs. Midwest Region
vs. Nation
*Comparison of current quarter weighted average capitalization rates.Source: RERC.
Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute.Investment TrendsQuarterly
122
St. Louis Transaction Breakdown (7/1/07 - 6/30/08)Office Industrial Retail Apartment Hotel
< $5 MillionVolume (Mil) $55 $127 $78 $37 –
Size Weighted Avg. ($ per sf/unit) $85 $50 $121 $31,013 –
Price Weighted Avg. ($ per sf/unit) $156 $75 $177 $34,677 –
Median ($ per sf/unit) $93 $60 $106 $36,000 –
> $5 MillionVolume (Mil) $966 $306 $605 $72 $188
Size Weighted Avg. ($ per sf/unit) $136 $54 $192 $59,749 $97,551
Price Weighted Avg. ($ per sf/unit) $157 $69 $209 $68,979 $122,725
Median ($ per sf/unit) $145 $53 $159 $57,019 $78,022
All TransactionsVolume (Mil) $1,021 $433 $684 $109 $199
Size Weighted Avg. ($ per sf/unit) $132 $53 $180 $45,387 $90,634
Price Weighted Avg. ($ per sf/unit) $157 $71 $205 $57,265 $118,408
Median ($ per sf/unit) $124 $59 $119 $36,667 $68,973
Capitalization Rates (All Transactions)Weighted Average (%) 7.7 – 7.2 – –
Median (%) 5.8 – 7.8 – –Source: RERC.
St. Louis
HistoricalMedianPriceperSquareFoot(12monthtrailing)–OFFICE
HistoricalMedianPriceperSquareFoot(12monthtrailing)–RETAIL
Please note that in order to more accurately reflect 12-month trail-ing average trends, scales are unique to each chart and for each property type and do not carry over from one chart to another.
Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute.Investment TrendsQuarterly
123
Demographics & Economics
Population Unemployment Rate (June 2008)
Toledo MSA 666,135 Toledo2 7.5%
Toledo Growth1 0.08% Ohio2 6.7%
National Growth1 1.23% National2 5.5%
Household Income & Value
Per Capita Income $26,677 2008 Households 259,973
1-year Job Growth – Household Growth 0.24%
1-year Job Additions – Median Home Price $113,796
Major Employers
St. Vincent Mercy Medical Center
Toledo Hospital
Bowling Green State University
Daimler Chrysler Corp.
University of ToledoSources: Bureau of Labor Statistics, NAR, STDB Online.“Home Price Analysis Report for Toledo Region – 2007” ©2007 NATIONAL ASSOCIATION OF REAL-TORS®. Used with permission. Reproduction, reprinting, or retransmission of this document in any form (electronic media included) is prohibited without written permission.1Projected annual growth over 5 years (2007-2012). 2Rates are non-seasonally adjusted.
Noteworthy Transactions
Sale Date Sale Price Sq. Ft./Units PPSF/PPU
Office
1656 Henthorne Dr. 4-08 $2,637,500 21,738 $121
4447 Monroe St. 4-08 $2,265,000 24,646 $92
Industrial
666 D St. 4-08 $6,300,000 155,160 $41
2449 Hill Ave. 4-08 $875,000 20,000 $44
Retail
Steve & Barrys 5-08 $6,400,000 103,161 $62
Talmadge Town Center 5-08 $6,500,000 18,560 $350
Apartment
Quail Hollow at the Lakes 4-08 $13,837,500 200 $69,188
4224 W Central Ave. 4-08 $950,000 30 $31,667Compiled by RERC for the RERC/CCIM Investment Trends Quarterly report.
Tole
do Metro Trend Analysis Last
QuarterPrevious
Year
Office
Size-Weighted Average PPSF
Industrial
Size-Weighted Average PPSF
Retail
Size-Weighted Average PPSF
Apartment
Size-Weighted Average PPU
Hotel
Size-Weighted Average PPU
Metro Cap Rate Comparison* Current Quarter
Apartment
vs. Midwest Region
vs. Nation
*Comparison of current quarter weighted average capitalization rates.Source: RERC.
Market Construction/Redevelopment Activity
Property Type
New(N)/Refurbished(R)
Total Sq. Ft./Units
Estimated Delivery
Fed Ex Hub-Perrysburg Township Industrial N 400,000 2009
GM Powertrain Facility Industrial N 400,000 2009Sources: CBRE, RE Business.
Copyright© 2008 by Real Estate Research Corporation (RERC) and the CCIM Institute.Investment TrendsQuarterly
124
Toledo Transaction Breakdown (7/1/07 - 6/30/08)Office Industrial Retail Apartment Hotel
< $5 MillionVolume (Mil) $18 $13 $21 $17 –
Size Weighted Avg. ($ per sf/unit) $78 $36 $69 $34,806 –
Price Weighted Avg. ($ per sf/unit) $87 $45 $103 $37,220 –
Median ($ per sf/unit) $77 $35 $80 $31,964 –
> $5 MillionVolume (Mil) $101 – – $107 –
Size Weighted Avg. ($ per sf/unit) $66 – – $68,534 –
Price Weighted Avg. ($ per sf/unit) $111 – – $74,272 –
Median ($ per sf/unit) $94 – – $68,531 –
All TransactionsVolume (Mil) $119 $19 $28 $124 $16
Size Weighted Avg. ($ per sf/unit) $67 $38 $67 $60,580 $40,442
Price Weighted Avg. ($ per sf/unit) $108 $43 $93 $69,252 $45,160
Median ($ per sf/unit) $77 $35 $78 $44,395 $40,036
Capitalization Rates (All Transactions)Weighted Average (%) – – – 7.1 –
Median (%) – – – 6.4 –Source: RERC.
Toledo
HistoricalMedianPriceperSquareFoot(12monthtrailing)–OFFICE
HistoricalMedianPriceperSquareFoot(12monthtrailing)–RETAIL
HistoricalMedianPriceperSquareFoot(12monthtrailing)–INDUSTRIAL
Please note that in order to more accurately reflect 12-month trail-ing average trends, scales are unique to each chart and for each property type and do not carry over from one chart to another.