Retail Cap Rates Over 9%
I saw that cap rates for retail space are over 9% on the Calculated Risk blog. The chart accompanying the post is amazing, it looks like a snowboarding half-pipe. Calculated Risk got the information from CB Richard Ellis. Retail cap rates dropped from over 8.50% in 2003 to almost 7.0% in mid-2007, and is now over 9.00%. The CB Richard Ellis reports states that strip mall vacancies are at the highest rate since CBRE started tracking vacancies in 1991, and that rent rates are dropping.