Commercial Web Site

[Arkie]

Looking for most cost-effective website that would have cap rate data (and other commercial property info) for specific types commercial properties. Not looking for the cheapest but based upon use what are some sites that give the biggest bang for the buck. Thanks Much for helping.

 

[TerryRohrer]

See if this meets your needs:

RealtyRates.com: Cap Rates, Commercial Real Estate, Capitalization Rates, Mortage Rates, Interest Rates, Market Data, Discount Rates, and News for Appraisers, Assessors, Brokers, Builders, Developers, Lenders, and Investors

RealtyRates.com provides commercial real estate investment, financial and mortgage rates and terms, cap rates, interest rates, market data, discount rates, news, and research and reference resources.

www.realtyrates.com

 

[Marty S.]

A couple / few choices:

The Investment Bulletin of the American Council of Life Insurers is a reasonably good source of institutional investment-grade capitalization rates. Take a look at their quarterly Commercial Mortgage Commitment publication. A couple of notes: 1) This is data from closed transactions, not a survey, so the material is 'backward looking'. 2) I have used the data to back into equity dividend rates -- all of the pieces from a Mortgage-Equity analysis are parts of the data points, so you can use basic math to calculate what the equity dividend rate would be for each of the survey points. This is helpful since equity dividend material is hard to come by and is sometimes just a guess in an appraisal. The ACLI data provides a benchmark -- i.e., a place to start - that most folks don't realize exists. https://www.acli.com/news-and-analysis/investment-bulletins

CBRE has a very good survey that is published semi-annually (it used to be quarterly) that covers a lot a metropolitan areas and, depending on the property type, will provide data on Class A, B, and C properties and, for multifamily, for urban vs. suburban locations within those metro areas. This is a survey and is forward-looking: https://www.cbre.com/insights/reports/us-cap-rate-survey-h1-2024

As mentioned, RealtyRates has a survey.

Other firms have surveys (Cushman & Wakefield, for example) so keep looking around! When you use a capitalization rate survey, you should familiarize yourself with its methodology because that could impact how you use it. For example, what types of folks did they survey? Are they brokers or lenders or appraisers or asset managers, or some combination? Is the survey forward looking ("What do you expect rates to do next quarter?") or current ("What ARE rates today?") or backwards looking? And, if the survey is asking questions about current rates, when exactly was the survey done because by the time the material is published, that is no longer "current", especially if it takes a couple/few months to compile and publish the material.

I hope this helps!

Marty S.

 

[Arkie]

Thanks much for the responses.
My apologies for my late reply.

 

[Terrel L. Shields]

I either calculate my own direct cap rates or use RealtyRate - It's cheap enough. It has 12 or so areas that it surveys regionally.

 

[Gobears81]

Realty Rates is essentially the only secondary data source if you are outside of a metro area, but they can quote massive spreads in cap rates. Limited service hotels are 6% to 16%, so that midpoint is the key. Restaurants is one that I've never fully understood, as full-service restaurant cap rates are 9% to 17%, with 14% midpoint. I'm in a high cap. rate environment, and don't typically sell independent restaurant cap rates above 9% or 10%, so not sure why the quotes are always so high.

 

[Red Flint]

I subscribe to Go Bears.

It's fwee.