The Appraisal Institute - s PresentationToday’s Presentation Source- CoStar COMPS Geographic...

The Appraisal InstituteAnnual Market Trends Seminar

Today’s PresentationToday’s Presentation

Source- CoStar COMPSGeographic Area• Los Angeles, Orange, Inland Empire

Review four asset classes• Office; Industrial; Shopping Centers;

Apartments (5-99 units) & (100+ units) Time Period- Year over Year • Q4 2005 vs. Q4 2006

Who is CoStarWho is CoStar

Largest Provider of Commercial Real Estate Information

Founded 1978

CoStar Acquires COMPS in 2000

Full-time research staff of over 1000

Traded on the NASDAQ (CSGP)

Office Class A VacancyOffice Class A Vacancy

OFFICE (Class A) Vacancy %

0

2

4

6

8

10

12

14

16

Los Angeles Orange Inland Empire

Market

Vac

ancy

%

Q4 2005Q4 2006

Office Class A Avg. Sales PriceOffice Class A Avg. Sales Price

OFFICE (Class A) Average $/sf

0

0.5

1

1.5

2

2.5

3


Market

Ave

rage

$/s

f

Q4 2005Q4 2006

Office Class A Cap RatesOffice Class A Cap Rates

OFFICE (Class A) Cap Rate

0

1

2

3

4

5

6

7

8


Market

Cap

Rate Q4 2005

Q4 2006

Office Non A VacancyOffice Non A Vacancy

OFFICE (Non-class A)Vacancy %

0

1

2

3

4

5

6

7

8


Market

% V

acan

cy

Q4 2005Q4 2006

Office Non-A Avg. Rental RateOffice Non-A Avg. Rental Rate

OFFICE (Non-class A)Average Rental Rate $

0

0.5

1

1.5

2

2.5


Market

Ave

rage

Ren

tal R

ate

$

Q4 2005Q4 2006

Office Non-A Cap RateOffice Non-A Cap Rate

OFFICE (Non-class A)Cap Rate

5.4

5.6

5.8

6

6.2

6.4

6.6

6.8

7


Market

Cap

Rate Q4 2005

Q4 2006

Shopping Centers VacancyShopping Centers Vacancy

SHOPPING CENTERS (70k sf or greater)Vacancy %

0

0.5

1

1.5

2

2.5

3

3.5


Market

Vaca

ncy

%

Q4 2005Q4 2006

Shopping Centers Rental RatesShopping Centers Rental Rates

SHOPPING CENTERS (70k sf or greater)Average Rental Rates (triple net)

0

0.5

1

1.5

2

2.5


Market

Ave

rage

$ R

enta

l Rat

e

Q4 2005Q4 2006

Apartments Avg. Sales PriceApartments Avg. Sales Price

APARTMENTS (5-99 Units) Average $/sf

0

50

100

150

200

250


Market

Ave

rage

$/s

f

Q4 2005Q4 2006

Apartment Avg. Unit PriceApartment Avg. Unit Price

APARTMENTS (5-99 Units) Average $/Unit

0

20

40

60

80

100

120

140

160

180

200


Market

Ave

rage

$/U

nit

Q4 2005Q4 2006

Apartments Cap Rates Apartments Cap Rates

APARTMENTS (5-99 Units) Cap Rates

0

1

2

3

4

5

6

7


Market

Cap

Rat

es

Q4 2005Q4 2006

Apartment Avg. Sales PriceApartment Avg. Sales Price

APARTMENTS (100+ Units)Average $/sf

0

50

100

150

200

250

300


Market

Aver

age

$/sf

Q4 2005Q4 2006

Apartment Avg. Unit PriceApartment Avg. Unit Price

APARTMENTS (100+ Units)Average $/Unit (000)

0

50

100

150

200

250


Market

Aver

age

$/U

nit (

000)

Q4 2005Q4 2006

Apartment Cap RateApartment Cap Rate

APARTMENTS (100+ Units)Cap Rate

0

1

2

3

4

5

6

7


Market

Cap

Rate

Q4 2005Q4 2006

Industrial Rental RateIndustrial Rental Rate

INDUSTRIAL (10K sf or Greater)Average Rental Rate

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7


Market

Ave

rage

$ R

enta

l Rat

e

Q4 2005Q4 2006

Industrial Cap RateIndustrial Cap Rate

INDUSTRIAL (10k or Greater) Cap Rate

5.4

5.6

5.8

6

6.2

6.4

6.6

6.8


Market

Cap

Rate Q4 2005

Q4 2006

SummarySummary

Office Class AVacancy in OC increased 2%Avg. $/sf increasing about $0.20Cap rates declining at 1 pt/year.

Office Non-Class AVacancy rates increasing in OC & IESmall increases in rental ratesCap rates in OC & IE remain above 6

SummarySummary

Industrial Rental rates are increasingCap rates are declining

Shopping CentersVacancy rates holdingRental rates increasing in IE

SummarySummary

Apartments (5-99 units)IE is the fastest growing avg. $/sfAvg. $/unit increasing Cap rates holding around 5

Apartments (100+ Units)OC avg. $/unit jumped $60Cap rates are declining

The Appraisal Institute - s PresentationToday’s Presentation Source- CoStar COMPS Geographic...

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