Update on CAP rates.

Alright, so about this time last year I reported on my observance of a decline in CAP rates for investment properties. You can get the article here. I was thinking that there has to be more to the story than just observing a general decline in values. In fact there is. I've noticed that some segments in the investment property markets have moved at different speeds than others. For instance, locally, I've seen single-tenant buildings with high credit tenants reduce in value at a rate less than multi-tenant strip shopping centers. Furthermore, as you can imagine, residential development land is off the charts.

Landlords, you're not left out of this content either. While a slow economy has put downward pressure on much business growth, tenants in our local market have been resistant to reduce space or move. Instead, they are opting to renew their existing spaces and maybe even negotiate a little concession. The good news is that the developer community has been somewhat observant and chosen not to build new buildings until the dust settles. Therefore, those entities who own stabilized properties, you have likely not seen too much distress.

So what can we take away here? Well, keep looking at the news only because we as professionals are expected to understand current events. However, dig a little deeper, you might just find a glimmer of hope and prosperity. Who would have thunk it?