Tag Archives: market

The coming Real Estate bubble

By Megan McArdle

Three and a half years ago, my newly married household acquired an actual house, a 1,750-square-foot slice of paradise in Washington’s Eckington neighborhood. In real estate euphemism, the house is what’s known as “lightly renovated,” the neighborhood “transitional.” “Lightly renovated” meant that some stuff had been done, most of it badly, but the HVAC dated from the Paleozoic, and the yard . . . um, better not to speak of the yard, unless you’re a Hollywood location scout looking for somewhere for your heroin-addict protagonist to bottom out.

Transitional” meant . . . oh, you can figure it out. We had gone north of H Street and east of North Capitol to the unfashionable precincts of the city’s Northeast quadrant. The most common response, when we told people where we lived, was “Where the hell is Eckington?” The second-most-common response was, “Wow [rapid eye-blinking]. I could never live there. It’s too far from everything.”

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Single-Tenant NNN Market Remains Tight

Single-Tenant NNN Market Remains Tight
via CCIM.com newsletter
Posted April 25th 2013

Institutional investors continue to capitalize on the competitive single-tenant net-leased market, according to NNN Advisors’ 1Q13 report. The median capitalization rate for NNN properties, which has fallen steadily since 4Q11, reached 6.99 percent in the first quarter. Flush with capital, institutional investors have been able to leverage the spread between Treasuries and historically low cap rates to improve returns, according to the report.

Individual investors looking for NNN assets in the $1 million to $10 million range are in a more difficult position, the report says, given the lack of supply of low-cap-rate properties, competition from institutional investors, and limited options for 1031 exchanges.

Five of the six major quick-service restaurants tracked by NNN Advisors saw a drop in new for-sale offerings in 1Q13. Drug store properties experienced an across-the-board decline in new offerings, while CVS and Walgreens competed for the lowest average cap rate, ending the quarter at 6.91 percent and 6.74 percent respectively.

National Average Cap Rates by Product, 1Q13

Auto related: 7.42%

Bank: 6.12%

Convenience/gas: 5.79%

Discount store: 8.02%

Drugstore: 6.77%

Restaurant: 6.75%

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Facebook Stock – We want your opinion!

CLICK HERE TO VOTE —–> Do you think Facebook Stock will end the year above or below it’s $38 IPO price?
(polls) <——- CLICK HERE TO VOTE

Will the sun rise or set on Facebook’s stock?

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