By H. Lee Murphy June 24, 2013
After a long, deep freeze, the real estate market is warming up, giving tenants and developers alike the sense that now is the time to do, well, something. The question is—what?
Commercial real estate investors are weighing whether to snap up properties as prices begin to climb. And as more tenants shop for locations, companies evaluating their space needs have to wonder whether now is the time to secure bargains before vacancies evaporate and rents firm up.
By Carisa Chappell
High demand from investors and low interest rates continue to push down capitalization (cap) rates in the commercial real estate market, according to an analysis from consulting firm PwC.
The report noted that in the second quarter of 2013, the combined overall cap rate fell to 6.91 percent across the 34 United States markets included in the survey conducted by PwC. It marked the 12th consecutive quarter that cap rates have fallen and represented the largest quarterly decline since the end of 2010. The average cap rate during the first quarter of 2013 was 7.08 percent. Read more…