survey of emerging market conditions · the survey of emerging market conditions is provided to all...

Survey of Emerging Market Conditions

© 2012-16 University of Florida Bergstrom Real Estate Center

May 2016

1


Quarter 1 2016 | Published May 2016



May 2016

2

Lead ResearcherDr. Wayne R. Archer, Executive Director

University of Florida Bergstrom Real Estate CenterProfessor of Real Estate

Warrington College of Business Administration

Researcher and AnalystTimothy S. Becker, CCIM, Director

University of Florida Bergstrom Real Estate Center

The Survey of Emerging Market Conditions is provided to all invited survey respondents who completed the survey during

the January 2016 fielding. For more information about the survey or the Bergstrom Center for Real Estate Studies, visit our

website at realestate.ufl.edu



May 2016

3

TABLE OF CONTENTS

EXECUTIVE SUMMARY & CONCLUSIONS �� 5

Highlights ............................................................................5

The Survey ..........................................................................5

General Investment Outlook .............................................6

Single Family & Condominium Development ..................6

Apartments .........................................................................6

Industrial .............................................................................6

Office ...................................................................................6

Retail ....................................................................................6

Land Investment .................................................................6

Capital Availability ..............................................................6

UF Commercial Real Estate

Sentiment Index .................................................................6

SECTION 1: INVESTMENT OUTLOOK �� 7

SECTION 2: RESIDENTIAL DEVELOPMENT �� 7

Expected Absorption Rates .............................................. 7

Expected Price Changes ...................................................8

Investment Outlook ..........................................................8

SECTION 3: APARTMENTS �� 8

Expected Occupancy .........................................................8

Expected Rental Rates .......................................................9

Investment Outlook ...........................................................9

Cap Rates ............................................................................9

Required Yields ...................................................................9

SECTION 4: INDUSTRIAL �� 11

Expected Occupancy ....................................................... 11

Expected Rental Rates ..................................................... 11

Investment Outlook ......................................................... 11

Cap Rates .......................................................................... 11

Yields ................................................................................. 11

SECTION 5: OFFICE ��13

Expected Occupancy .......................................................13

SECTION 6: RETAIL ��15

Expected Occupancy .....................................................15

Expected Rental Rates .....................................................15

Investment Outlook .........................................................15

Cap Rates ..........................................................................16

SECTION 7: OUTLOOK FOR INVESTMENT IN UNDEVELOPED LAND �� 17

Land Without Entitlements or with

Residential Entitlements .................................................. 17

Land with Office or Retail Entitlements ......................... 17

Land with Hospitality Entitlements ................................ 17

Land with Entitlements for

Warehouse or R&D ........................................................... 17

Land for Urban Renewal .................................................. 17

SECTION 8: BUSINESS AND CAPITAL AVAILABILITY OUTLOOK ��18

Capital Availability ............................................................18

UF Commercial Real Estate

Sentiment Index ...............................................................18

SECTION 9: DOMINANT INVESTORS ��19

SECTION 10: CHARACTERISTICS OF SURVEY RESPONDENTS ��19

Markets of Familiarity ..................................................... 20

Property types of Familiarity ......................................... 20

SECTION 11: DETAILS OF CAP RATES, YIELDS AND EXPECTED CHANGES ��21

SECTION 12: LOCAL MARKETS ��23



May 2016

4

EXECUTIVE SUMMARY & CONCLUSIONS

Florida real estate remains strong among industry practi-tioners as UF’s Commercial Real Estate Sentiment Index, an outlook of our respondents’ own businesses, remains positive at levels similar to 2006.

Florida’s economy continues to drive real estate markets as state GDP has grown consistently. Florida’s growth has continued to produce jobs throughout the state, produc-ing over 243,000 jobs from the same time last year. The resulting unemployment rates have dropped almost a full percentage point over that time in each of the major metro areas of the state. Statewide unemployment was 5% at the end of the quarter with each of the major metros below 5%, ranging from 4.4% to 4.9%.

Tourism continues to be a major source of growth with record numbers of tourists visiting in 2015. According to Visit Florida Research, almost 105 million visitors came to Florida in 2015, a 6.6% increase over the prior year’s record. Surprisingly, 8% of the increased tourism was from domestic travelers, reflecting the strengthening dollar versus world currencies.

Real estate is the main driver of Florida’s economy and its resurgence has both benefited from and contributed to the improving economy. Florida’s bright outlook continues to show up in the UF Bureau of Economic and Business Research’s (BEBR) Consumer Sentiment Index which reached 93.4 at the end of the quarter and is trending higher.

While survey respondents are positive about the future, they remained concerned about government regulation and the uncertainty of the current election cycle. They also remain wary of world economic concerns that are impact-ing the capital markets. The first quarter saw significant disruption in the capital markets with China’s slow down and declining oil prices. These issues had a negative impact on the CMBS markets and the therefore the liquidity of the real estate markets. Concerns about the coming im-plementation of Dodd-Frank rules, Basel III and others is

negatively impacting our respondents’ outlook for capital availability in the near term. One past concern seems to have subsided as continued US economic sluggishness con-tinues to postpone rate increases. This will prevent rising rates from adding to the constricting capital situation over the short term.

Despite the uncertainties, Florida’s economy and therefore the real estate markets continue to improve and that trend should continue.

H IGH LIGHTS

ɀ The UF Commercial Real Estate Sentiment Index remained relatively stable at 7.14 and near 2006 levels.

ɀ The outlook for occupancy and rents remained pos-itive across all property types with expectations that they will remain stable or increase.

ɀ Cap rates remained stable across most property types. Expectations for cap rates were mixed as uncertainty on interest rates had impacts on certain property types.

ɀ Yields have remained relatively stable across most property types.

ɀ The outlook for investment remained positive across all property types.

ɀ Respondents’ outlook for capital availability declined this quarter with most now expecting no change in capital levels.

TH E SURVEY

Our quarterly survey, conducted by the Bergstrom Center for Real Estate Studies, Warrington College of Business Administration, University of Florida is in its forty-first fielding. The total number of participants, at 80, is the most extensive survey of Florida professional real estate analysts and investors conducted on an ongoing basis. It includes respondents representing thirteen urban regions of the state and up to fifteen property types.



May 2016

5

GEN ER AL I NVESTM ENT OUTLOOK

Our general index of real estate investment outlook, weighted 40 percent for single family and condo develop-ment, 40 percent for apartments and commercial rental property and 20 percent for developable land, remained stable this quarter near survey highs. Most respondents believe it is a good time to invest in Florida real estate. Land continues to improve as an investment alternative as development remains hot throughout the state.

SI NGLE FAM I LY & CON DOM I N IUM DEVELOP M ENT

The outlook for new single family development remained positive but cooled this quarter. Florida continues to have positive population growth and employment growth which is driving demand for new homes. Extreme winter con-ditions prompt more people to consider Florida, particu-larly retirees or near retirees. A stronger dollar and global economic issues have impacted the Miami condo market, dropping absorption significantly in the first quarter.

APARTM ENTS

The outlook for multi-family properties continues to be positive. Occupancy has been increasing at a rapid pace over the past few years; however, because of increases to inventory from new construction along with current units near capacity, respondents believe that occupancy will level off. Respondents remain optimistic that rents will rise with inflation. Cap rates remained steady this quarter with more respondents believing they will increase in the next year

I N DUSTRIAL

The outlook for investment in industrial properties remains slightly positive this quarter. Rents and occupancy are ex-pected to increase in coming quarters. Cap rates and yields remained relatively stable for both sectors, a trend that is expected to continue in future quarters.

OFFICE

The outlook for the office remained positive this quarter, with a majority of respondents believing it is a good time to buy. Increasing occupancy and rent expectations are

driving the investment outlook. Cap rates and yields have remained relatively stable, and most respondents expect that trend to continue.

RETAI L

The outlook for retail properties remained positive this quarter for three of the four sectors. Occupancy and rent growth expectations declined for all sectors this quarter as there continues to be tremendous pressure from online shopping. With the declining expectations for retail funda-mentals, respondents’ now expect cap rates and yields to increase in the near term.

L AN D I NVESTM ENT

The outlook for investment in land remains positive across all segments. Improving fundamentals, job growth and population growth are driving development across the state. As land prices continue to rise, increasing develop-ment costs will combine to curb some future development.

C AP ITAL AVAI L ABI LIT Y

The disruption in the capital markets in the first quarter along with pending implementation of rules in Dodd-Frank regarding risk retention and Basel III rules regarding high velocity commercial real estate drove down expecta-tions for capital availability. Most respondents now believe that there will be no change in the availability of capital

UF COM M ERCIAL RE AL ESTATE SENTI M ENT I N DEX

The Sentiment index increased slightly this quarter and remains at levels similar to 2006. Other service provid-ers, developers and owners drove the positive outlook this quarter. Broker outlooks dropped significantly in the first quarter reflecting the turbulence in the capital markets in the first quarter as less capital means fewer deals. Lenders and Appraisers continue to be less optimistic with the com-ing implementation of new rules and the continued impact of Dodd-Frank.



May 2016

6

SECTION 1: INVESTMENT OUTLOOK

The investment outlook for Florida continued to be positive this quarter at levels near survey highs. Despite uncertainty in the national economic view, Florida’s economy continues to grow with record tourism and a robust real estate mar-ket. Florida’s population continues to grow at almost 1,000 people a day which employment prospects continue to be positive. These factors provide healthy real estate funda-ments which attract investment.

Capital continues to look for yield in this low interest rate environment driving that capital to real estate investment. In addition, development, while robust across the state has been held in check from over development particularly in the retail and office sectors. This prevents a miss match of supply and demand fundaments and maintains a conducive envi-ronment for investment.

Respondents remain concerned about the uncertainty in Washington D.C. and the impact of new rule implementation on the availability of capital.

This investment index is weighted 40 percent on single family and residential condominium development, 40 percent on rental property of all types, and 20 percent on undeveloped land. Thus, it is at least fifty percent driven by the residential development outlook.

SECTION 2: RESIDENTIAL DEVELOPMENT

EXP ECTED ABSORPTION R ATES

The outlook for residential absorption remained positive this quarter with expectations that absorption rates will increase slightly over the next year. Florida continues to draw almost 1,000 new residents per day who need a place to live. That demand coupled with an improving employ-ment market and consumer sentiment is providing positive fundamentals for the new residential construction market.

While expectations are positive they are lower than previ-ous quarters as respondents are concerned about the pric-ing of new homes and the impact on absorption. Financ-ing is still difficult for first time home buyers which weights down absorption potential.

The condo market is primarily driven by South Florida, which has softened over the past few quarters. A strength-ening dollar is making Miami condos more expensive for foreign buyers and economic weakness in their home coun-tries is impacting their willingness to invest in condos.

-‐2 -‐1.5 -‐1

-‐0.5 0

0.5 1

1.5 2

06-‐Q1

06-‐Q4

07-‐Q3

08-‐Q2

09-‐Q1

09-‐Q4

10-‐Q3

11-‐Q2

12-‐Q1

12-‐Q4

13-‐Q3

14-‐Q2

15-‐Q2

Investment Outlook: Florida Real Estate

Bad Time To Buy

Good Time To Buy

Mixed Time To Buy

-‐1 -‐0.8 -‐0.6 -‐0.4 -‐0.2

0 0.2 0.4 0.6 0.8 1

06-‐Q1

06-‐Q4

07-‐Q3

08-‐Q2

09-‐Q1

09-‐Q4

10-‐Q3

11-‐Q2

12-‐Q1

12-‐Q4

13-‐Q3

14-‐Q2

15-‐Q2

Outlook for Residen0al Absorp0on Rates

Single Family Development

Condominium Development

Expecting Increase

Expecting Decrease

Expecting No Change



May 2016

7

EXP ECTED P RICE CHANGES

Expectations for price changes decreased slightly this quar-ter for both single family and condo developments, coming off of survey highs. The increased cost of construction and the cost of land is driving pricing higher. Respondents ex-pect this trend to continue as we start to see baby boomers retire and move to Florida, driving demand and pricing higher.

However, these price increases are putting pressure on absorption as wages remain depressed and more first time homeowners are unable to afford the current level of pricing.

I NVESTM ENT OUTLOOK

The outlook for investment in residential development remains positive. Strong price increases are offsetting drops in absorption while Florida continues to attract new residents to the state in need of housing. Large increases in rent will force more renters to consider the rent vs. buy de-cision which will support demand for new housing. Howev-er, increases in both the cost of construction and land will provide challenges to additional investment.

-‐2

-‐1.5

-‐1

-‐0.5

0

0.5

1

1.5

2

06-‐Q1

06-‐Q4

07-‐Q3

08-‐Q2

09-‐Q1

09-‐Q4

10-‐Q3

11-‐Q2

12-‐Q1

12-‐Q4

13-‐Q3

14-‐Q2

15-‐Q2

Outlook for Investment: Residential Development

Single Family Development Condominium Development

Bad Time To Buy

Good Time To Buy

Mixed Time To Buy

SECTION 3: APARTMENTS

EXP ECTED O CCUPANCY

The outlook for occupancy in market rate apartments has stabilized with respondents expecting no change in occupancy levels. Their views reflect the strong demand for rental units and the fact that in most markets current inventory is completely full. New development continues to add units to inventory which is immediately rented. Strong occupancy has driven tremendous rent appreciation to levels that are starting to become unaffordable to the lower middle class. In addition rental increases are forcing renters to evaluate the rent vs. own financials.

Respondents continue to believe that demographics are favorable for this sector in the near future, which will have a positive impact on absorption of additional supply.

-‐1

-‐0.8

-‐0.6

-‐0.4

-‐0.2

0

0.2

0.4

0.6

0.8

1

06-‐Q1

06-‐Q4

07-‐Q3

08-‐Q2

09-‐Q1

09-‐Q4

10-‐Q3

11-‐Q2

12-‐Q1

12-‐Q4

13-‐Q3

14-‐Q2

15-‐Q2

Outlook for Occupancy: Apartments

Apartments -‐ Market Rent

Apartments -‐ Condo Conversion

Expecting Increase

Expecting Decrease

Expecting No Change

-‐2 -‐1.8 -‐1.6 -‐1.4 -‐1.2 -‐1

-‐0.8 -‐0.6 -‐0.4 -‐0.2

0 0.2 0.4 0.6 0.8 1

06-‐Q1

06-‐Q3

07-‐Q1

07-‐Q3

08-‐Q1

08-‐Q3

09-‐Q1

09-‐Q3

10-‐Q1

10-‐Q3

11-‐Q1

11-‐Q3

12-‐Q1

12-‐Q3

13-‐Q1

13-‐Q3

14-‐Q1

14-‐Q3

15-‐Q2

16-‐Q1

Outlook for Prices of New Residences

Single Family Development Condominium Development

Rising Faster Than Inflation

Declining

Rising at the Rate of Inflation

Rising Slower than the rate of Inflation



May 2016

8

EXP ECTED RENTAL R ATES

Expectations for rental rates continue to be positive as for market rent apartments with respondents expecting rental rates to increase with inflation. Demand continues to be strong across the state with very low vacancies even in light of increased development. Pricing has increased dramati-cally over the past four years which is creating both tre-mendous value but also and affordability crisis. Increased development of new units may help alleviate some of the rent increases by bringing higher vacancy, but affordability will remain a negative with wages still relatively stagnant in this recovery.


Apartments continue to be a favored investment with high levels of occupancy and strong rent increases. Demograph-ics will continue to favor renting as the younger population prefers to have the flexibility to move and is waiting longer to form families. However, affordability is becoming a big issue with more of the population being unable to afford quality, well located housing.

The question for this sector is what the upper limit of rent is and have we reached it. New projects will be harder to justify considering this ceiling and increasing cost of both construction and land. Despite these challenges, the sector continues to benefit from low interest rates and plenty of debt capital from the GSEs.

C AP R ATES

Cap rates remained stable at 6.0% this quarter for market rent apartments. High occupancy and rent growth con-tinue to attract capital to this sector. New development is going to be harder to justify with increasing land and con-struction costs. However the large amount of investment capital available will keep cap rates at current levels in the near term.

-‐2 -‐1.8 -‐1.6 -‐1.4 -‐1.2 -‐1

-‐0.8 -‐0.6 -‐0.4 -‐0.2

0 0.2 0.4 0.6 0.8 1

06-‐Q1

06-‐Q4

07-‐Q3

08-‐Q2

09-‐Q1

09-‐Q4

10-‐Q3

11-‐Q2

12-‐Q1

12-‐Q4

13-‐Q3

14-‐Q2

Outlook for Rental Rates -‐ Apartments

Apartments-‐-‐Market Rent

Apartments-‐For Condo Conversion


Declining


RisingSlower than the Rate of Inflation

-2

-1.5

-1

-0.5

0

0.5

1

1.5

2

06-Q

1

06-Q

4

07-Q

3

08-Q

2

09-Q

1

09-Q

4

10-Q

3

11-Q

2

12-Q

1

12-Q

4

13-Q

3

14-Q

2

15-Q

2

Outlook for Investment: Apartments

Apartments-Market Rent

Apartments-For Condo Conversion

Bad Time To Buy

Good Time To Buy

Mixed Time To Buy

REQUI RED YI ELDS

Required yields jumped to 9.7% this quarter. Several risks are starting to take hold in this sector including affordabil-ity and rising costs. Also, a large pipeline of new construc-tion will drive some of the fundamentals lower raising the risk for investment. Despite the additional risks, investment in apartment properties is still a favored asset class for investors.



May 2016

9

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0%

06-‐Q1

06-‐Q4

07-‐Q3

08-‐Q2

09-‐Q1

09-‐Q4

10-‐Q3

11-‐Q2

12-‐Q1

12-‐Q4

13-‐Q3

14-‐Q2

15-‐Q2

Current Cap Rates -‐ Apartments


Apartments -‐ Condo Conversion

-‐1

-‐0.5

0

0.5

1

06-‐Q1

06-‐Q4

07-‐Q3

08-‐Q2

09-‐Q1

09-‐Q4

10-‐Q3

11-‐Q2

12-‐Q1

12-‐Q4

13-‐Q3

14-‐Q2

15-‐Q2

Expected Change in Cap Rates -‐ Apartments


Apartments -‐ Condo conversion

Expecting Increase

Expecting Decrease

Expecting No Change

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0% 22.0% 24.0% 26.0%

06-‐Q1

06-‐Q4

07-‐Q3

08-‐Q2

09-‐Q1

09-‐Q4

10-‐Q3

11-‐Q2

12-‐Q1

12-‐Q4

13-‐Q3

14-‐Q2

15-‐Q2

Required Yields -‐ Apartments

Apartments -‐ Market Rent Apartments -‐ Condo Conversion

-‐1

-‐0.5

0

0.5

1

06-‐Q1

06-‐Q4

07-‐Q3

08-‐Q2

09-‐Q1

09-‐Q4

10-‐Q3

11-‐Q2

12-‐Q1

12-‐Q4

13-‐Q3

14-‐Q2

15-‐Q2

Expected Change in Required Yields -‐ Apartments


Apartments -‐ Condo conversion

Expecting Increase

Expecting Decrease

Expecting No Change



May 2016

10

SECTION 4: INDUSTRIAL


The outlook for occupancy has continued to decline over the past several quarters, however, respondents still believe it will increase. With Florida’s economy improving and more real estate construction happening across the state, there is more demand for the flex space industrial. Addi-tionally, small business start ups traditionally use flex space. Distribution and warehouse space is also being developed to address additional demand for export to Latin America and for ecommerce distribution.


Industrial rents are expected to rise with inflation over the next year with respondent expectations near survey highs. Development of industrial space has been disciplined which has allowed continued improvement in occupancy. The higher occupancy is driving rent growth that is expect-ed to continue over the next year.


The outlook for investment remains positive but is signifi-cantly lower than survey highs. It appears that investors are looking at industrial fundamentals as peaking and therefore are becoming slightly more wary of this asset class.

C AP R ATES

Cap rates remained stable for flex space at 7.5% while warehouse cap rates increased to 7.9%. Respondents ex-pect that rates will remain stable in this sector.

YI ELDS

Required yields for both sectors remained relatively stable at 9.8% this quarter. Respondents believe that this trend will continue in the near future with positive fundamentals for the sector.

-‐1

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0

0.2

0.4

0.6

0.8

1

06-‐Q

1 06

-‐Q4

07-‐Q

3 08

-‐Q2

09-‐Q

1 09

-‐Q4

10-‐Q

3 11

-‐Q2

12-‐Q

1 12

-‐Q4

13-‐Q

3 14

-‐Q2

15-‐Q

2

Outlook for Occupancy: Industrial

Warehouse and Distribu=on: Class A

Flex Space, R & D, Office-‐Warehouse: Class A

Expecting Increase

Expecting Decrease

Expecting No Change

-2

-1.5

-1

-0.5

0

0.5

1

1.5

2

06-Q

1

06-Q

4

07-Q

3

08-Q

2

09-Q

1

09-Q

4

10-Q

3

11-Q

2

12-Q

1

12-Q

4

13-Q

3

14-Q

2

15-Q

2 Outlook for Investment:

Industrial

Warehouse and Distribution: Class A

Flex Space, R & D, Office-Warehouse

Bad Time To Buy

Good Time To Buy

Mixed Time To Buy

-‐2 -‐1.8 -‐1.6 -‐1.4 -‐1.2

-‐1 -‐0.8 -‐0.6 -‐0.4 -‐0.2

0 0.2 0.4 0.6 0.8

1

06-‐Q

1 06

-‐Q4

07-‐Q

3 08

-‐Q2

09-‐Q

1 09

-‐Q4

10-‐Q

3 11

-‐Q2

12-‐Q

1 12

-‐Q4

13-‐Q

3 14

-‐Q2

15-‐Q

2

Outlook for Rental Rates -‐ Industrial

Warehouse and Distribu=on: Class A

Flex Space, R & D, Office-‐Warehouse: Class A


Declining


Rising Slower than the Rate of Inflation



May 2016

11

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

06-‐Q1

06-‐Q4

07-‐Q3

08-‐Q2

09-‐Q1

09-‐Q4

10-‐Q3

11-‐Q2

12-‐Q1

12-‐Q4

13-‐Q3

14-‐Q2

15-‐Q2

Current Cap Rates -‐ Industrial

Warehouse and Distribu>on

Flex, R&D, Office-‐Warehouse -‐1

-‐0.5

0

0.5

1

06-‐Q1

06-‐Q4

07-‐Q3

08-‐Q2

09-‐Q1

09-‐Q4

10-‐Q3

11-‐Q2

12-‐Q1

12-‐Q4

13-‐Q3

14-‐Q2

15-‐Q2

Expected Change in Cap Rates -‐ Industrial

Warehouse and Distribu=on Flex, R&D, Office-‐warehouse

Expecting Increase

Expecting Decrease

Expecting No Change

-‐1

-‐0.5

0

0.5

1

06-‐Q1

06-‐Q4

07-‐Q3

08-‐Q2

09-‐Q1

09-‐Q4

10-‐Q3

11-‐Q2

12-‐Q1

12-‐Q4

13-‐Q3

14-‐Q2

15-‐Q2

Expected Change in Required Yields -‐ Industrial

Warehouse and Distribu=on

Flex, R&D, Office-‐warehouse

Expecting Increase

Expecting Decrease

Expecting No Change

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

06-‐Q

1

06-‐Q

4

07-‐Q

3

08-‐Q

2

09-‐Q

1

09-‐Q

4

10-‐Q

3

11-‐Q

2

12-‐Q

1

12-‐Q

4

13-‐Q

3

14-‐Q

2

15-‐Q

2

Required Yields -‐ Industrial

Warehouse and Distribu>on: Class A Flex Space, R & D, Office-‐Warehouse: Class A



May 2016

12

SECTION 5: OFFICE


The outlook for occupancy in both sectors remains positive with respondents expecting occupancy to increase over the next year. Florida continues to generate office employment that will drive absorption of office vacancy. Additionally, there has been little development of new office space in the major metro areas. The lack of development is allowing occupancy to increase with is having a positive impact on rents.

Despite the improvement in office jobs, companies con-tinue to be very cautious about the amount of space they need per worker. As these companies bring in new staff, they do so in existing office space. This trend will contin-ue to regulate new development and continue to have a positive impact on occupancy. However, the continued reduction in office space per worker puts tremendous demands on current space that was not designed for the number of people using the space. Demands on plumbing, heating and air systems and parking will provide challenges to landlords and may drive new development that can plan for these trends. Given these competing trends, we should expect that occupancy will continue to improve in the short term but level off as development starts.

-‐1

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-‐0.6

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0

0.2

0.4

0.6

0.8

1

06-‐Q1

06-‐Q4

07-‐Q3

08-‐Q2

09-‐Q1

09-‐Q4

10-‐Q3

11-‐Q2

12-‐Q1

12-‐Q4

13-‐Q3

14-‐Q2

15-‐Q2

Outlook for Occupancy: Office

Class A Office

Class B Office

Expecting Increase

Expecting Decrease

Expecting No Change


The outlook for rental rates remains positive for both sectors with respondents expecting rents to increase with inflation. A lack of new development long with improv-ing occupancy is providing landlords the opportunity to increase rents. Well located properties with the ability to handle the increasing demands of a denser working envi-ronment are outperforming the suburban office markets. Continued growth of the Florida economy with office job demand and limited new development will help this trend continue over the next year.

-‐2 -‐1.8 -‐1.6 -‐1.4 -‐1.2 -‐1

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0 0.2 0.4 0.6 0.8 1

06-‐Q1

06-‐Q4

07-‐Q3

08-‐Q2

09-‐Q1

09-‐Q4

10-‐Q3

11-‐Q2

12-‐Q1

12-‐Q4

13-‐Q3

14-‐Q2

15-‐Q2

Outlook for Rental Rates -‐ Office

Class A Office Class B Office


Declining



-2

-1.5

-1

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0

0.5

1

1.5

2

06-Q

1

06-Q

4

07-Q

3

08-Q

2

09-Q

1

09-Q

4

10-Q

3

11-Q

2

12-Q

1

12-Q

4

13-Q

3

14-Q

2

15-Q

2 Outlook for Investment:

Office

Class A Office

Class B Office

Bad Time To Buy

Good Time To Buy

Mixed Time To Buy




May 2016

13

-‐1

-‐0.5

0

0.5

1

06-‐Q1

06-‐Q4

07-‐Q3

08-‐Q2

09-‐Q1

09-‐Q4

10-‐Q3

11-‐Q2

12-‐Q1

12-‐Q4

13-‐Q3

14-‐Q2

15-‐Q2

Expected Change in Cap Rates -‐ Office

Class A Office

Class B Office

Expecting Increase

Expecting Decrease

Expecting No Change

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

06-‐Q1

06-‐Q4

07-‐Q3

08-‐Q2

09-‐Q1

09-‐Q4

10-‐Q3

11-‐Q2

12-‐Q1

12-‐Q4

13-‐Q3

14-‐Q2

15-‐Q2

Current Cap Rates -‐ Office


The outlook for investment remains positive for both office sectors. Limited development, improvement in office employment and growing rents are attracting investors to the office sector. Issues will remain with increasing stress on office infrastructure as companies continue to put more people in the same space. Newer buildings that can adapt to the new space per employee ratios and provide operat-ing cost savings will benefit over competing buildings.

C AP R ATES

Cap rates increased slightly this quarter with Class A cap rates at 6.8% and Class B cap rates at 8.1%. Respondents expect the rates to increase over the next year. Respondents are wary of the impact of the implementation of new rules of Dodd-Frank and Basel III, particularly on financial institutions which are large users of office space. Addition-ally, respondents are concerned about the impact of the coming election on growth.

YI ELDS

Required yields also increased slightly this quarter with Class A and B yields at 9.7%. Government regulation and its impact on financial institutions is driving uncertainty in this sector driving respondents’ expectations for higher yields in the future.

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0% 06

-‐Q1

06-‐Q4

07-‐Q3

08-‐Q2

09-‐Q1

09-‐Q4

10-‐Q3

11-‐Q2

12-‐Q1

12-‐Q4

13-‐Q3

14-‐Q2

Required Yields -‐ Office


-‐1

-‐0.5

0

0.5

1

06-‐Q1

06-‐Q4

07-‐Q3

08-‐Q2

09-‐Q1

09-‐Q4

10-‐Q3

11-‐Q2

12-‐Q1

12-‐Q4

13-‐Q3

14-‐Q2

Expected Change in Required Yields -‐ Office


Expecting Increase

Expecting Decrease

Expecting No Change



May 2016

14

SECTION 6: RETAIL


The outlook for occupancy declined across all sectors this quarter with respondents now expecting occupancy to remain stable. The retail industry continues to transform as shopping habits adjust. We have seen a number of high profile retailers either enter bankruptcy or liquidate. The latest impact will be from the liquidation of Sports Authority. Pressure will continue on retailers to decrease their store footprint which will continue to put downward pressure on occupancy.

In addition to the changes happening in the retail sector, despite high consumer sentiment, there has been a retreat by the consumer on spending over the past few quarters. With wages still lagging the economic recovery and con-sumers concerned the impact and uncertainty of the elec-tion cycle, retail sales could be modest over the next year.

-‐1

-‐0.8

-‐0.6

-‐0.4

-‐0.2

0

0.2

0.4

0.6

0.8

1

06-‐Q1

06-‐Q4

07-‐Q3

08-‐Q2

09-‐Q1

09-‐Q4

10-‐Q3

11-‐Q2

12-‐Q1

12-‐Q4

13-‐Q3

14-‐Q2

15-‐Q2

Outlook for Occupancy: Retail

Large Centers

Neighborhood Centers

Strip Centers

Free Standing

Expecting Increase

Expecting Decrease

Expecting No Change

-‐2 -‐1.8 -‐1.6 -‐1.4 -‐1.2 -‐1

-‐0.8 -‐0.6 -‐0.4 -‐0.2

0 0.2 0.4 0.6 0.8 1

06-‐Q1

06-‐Q4

07-‐Q3

08-‐Q2

09-‐Q1

09-‐Q4

10-‐Q3

11-‐Q2

12-‐Q1

12-‐Q4

13-‐Q3

14-‐Q2

15-‐Q2

Outlook for Rental Rates -‐ Retail

Large Centers Neighborhood Centers Strip Centers Free Standing


Declining



-‐2

-‐1.5

-‐1

-‐0.5

0

0.5

1

1.5

2

06-‐Q1

06-‐Q4

07-‐Q3

08-‐Q2

09-‐Q1

09-‐Q4

10-‐Q3

11-‐Q2

12-‐Q1

12-‐Q4

13-‐Q3

14-‐Q2

15-‐Q2

Outlook for Investment: Retail


Bad Time To Buy

Good Time To Buy

Mixed Time To Buy EXP ECTED RENTAL R ATES

The outlook for rental rates has declined dramatically over the past few quarters as well with more respondents believing that rents will grow less than inflation. With the continued attrition of high profile retailers and the pressure

of online shopping, occupancy and rents will be pressured to the downside. Consumer spending is also weakening this quarter which will impact landlords with percentage rent leases. On the positive side, job growth in Florida and the continued strong economy along with tourist spend-ing growth should provide a counterbalance for the retail industry in Florida.


Despite the downward expectations for both occupancy and rental rates, the outlook for investment in retail re-mains positive across all sectors with the exception of large centers. The liquidation of Sports Authority will be anoth-er challenge to power center owners that will be looking to back fill those boxes.



May 2016

15

Additionally, those centers will be subject to co-tenancy clauses with the possibility of large reductions in rent. For the remaining sectors in retail, investors continue to believe that now is a good time to buy. The well located centers with online proof retail as well as retailers who are embrac-ing online retailing will be in demand with investors as they take a disproportionate share of investment capital.

C AP R ATES

Cap rates increased across all of the retail sectors with rates for large centers, neighborhood centers, strip centers and free standing retail at 7%, 6.9%, 8.4% and 6.1% re-spectively. Respondents currently believe that cap rates will remain stable or increase over the coming year

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

06-‐Q1

06-‐Q4

07-‐Q3

08-‐Q2

09-‐Q1

09-‐Q4

10-‐Q3

11-‐Q2

12-‐Q1

12-‐Q4

13-‐Q3

14-‐Q2

15-‐Q2

Current Cap Rates -‐ Retail

Larger Centers Neighborhood Centers

Strip Centers Free Standing

-‐1

-‐0.5

0

0.5

1

06-‐Q1

06-‐Q4

07-‐Q3

08-‐Q2

09-‐Q1

09-‐Q4

10-‐Q3

11-‐Q2

12-‐Q1

12-‐Q4

13-‐Q3

14-‐Q2

15-‐Q2

Expected Change in Cap Rates -‐ Retail

Larger Centers


Strip Centers

Free Standing

Expecting Increase

Expecting Decrease

Expecting No Change

-‐1

-‐0.5

0

0.5

1

06-‐Q1

06-‐Q4

07-‐Q3

08-‐Q2

09-‐Q1

09-‐Q4

10-‐Q3

11-‐Q2

12-‐Q1

12-‐Q4

13-‐Q3

14-‐Q2

15-‐Q2

Expected Change in Required Yields -‐ Retail

Larger Centers


Strip Centers

Free Standing

Expecting Increase

Expecting Decrease

Expecting No Change

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0%

06-‐Q1

06-‐Q4

07-‐Q3

08-‐Q2

09-‐Q1

09-‐Q4

10-‐Q3

11-‐Q2

12-‐Q1

12-‐Q4

13-‐Q3

14-‐Q2

15-‐Q2

Required Yields -‐ Retail


YI ELDS

Yields have also increased this quarter matching inves-tors’ opinions of higher risks for this asset class. Online shopping and consumer spending will continue to drive investment decisions over the next year with only the best located, best retailed centers receiving a majority of the investment capital.



May 2016

16

SECTION 7: OUTLOOK FOR INVESTMENT IN UNDEVELOPED LAND

L AN D WITHO UT ENTITLEM ENTS OR WITH RESI DENTIA L ENTITLEM ENTS

The outlook for investment in land continues to be posi-tive, however, respondents’ expectations have declined over the past few quarters. Land with entitlements continues to have the best investment outlook as the housing sector builds to meet the demand of the population growth in Florida. However, with increasing pricing and construction costs starting to make affordability an issue, land pricing will come under scrutiny.

-2

-1.5

-1

-0.5

0

0.5

1

1.5

2

06-Q

1

06-Q

4

07-Q

3

08-Q

2

09-Q

1

09-Q

4

10-Q

3

11-Q

2

12-Q

1

12-Q

4

13-Q

3

14-Q

2

15-Q

2

Outlook for Investment in Land:

No Entitlements, Residential, Commercial

Land Without Entitlements

With Residential Entitlements

With Office/Retail Entitlements

Bad Time To Buy

Good Time To Buy

Mixed Time To Buy

L AN D WITH OFFICE OR RETAI L ENTITLEM ENTS

The outlook for investment in land with office or retail entitlements remained positive but decreased this quarter. Office fundamentals continue to improve but new devel-

-‐2

-‐1.5

-‐1

-‐0.5

0

0.5

1

1.5

2

06-‐Q

1

06-‐Q

4

07-‐Q

3

08-‐Q

2

09-‐Q

1

09-‐Q

4

10-‐Q

3

11-‐Q

2

12-‐Q

1

12-‐Q

4

13-‐Q

3

14-‐Q

2

15-‐Q

2

Outlook for Investment in Land: Hospitality, Industrial,

Urban Renewal

Land With Hospitality En>tlements With Warehouse/R & D En>tlements For Urban Renewal

Bad Time To Buy

Good Time To Buy

Mixed Time To Buy

opment is limited. Retail has many challenges with only quality located land in demand for new development. Job growth and consumer sentiment will have a positive impact on the demand for new office and retail locations which improves the outlook for land investment.

L AN D WITH HOSP ITALIT Y ENTITLEM ENTS

The investment outlook for land with hospitality enti-tlements remains positive but declined this quarter. The tremendous growth in tourist visits to Florida has driven a lot of new development in Florida. As that new develop-ment gets absorbed there are questions about the need for additional hotel inventory in the state. Continued strong growth in tourism will help the investment outlook in hotel land going forward.

L AN D WITH ENTITLEM ENTS FOR WAR EHOUSE OR R & D

The investment outlook for land with warehouse or R&D entitlements declined slightly this quarter but remains positive. Investment in warehouse projects is picking up in port areas, particularly Miami, where exports to South America are up and require additional warehouse space. Ports throughout Florida continue to focus on expansion in preparation for the expansion of the Panama Canal. Re-tail companies continue to refine their business models to compete with online shopping which is driving additional demand for warehouse space closer to the consumer. This trend will have a positive impact on areas connected with major roads and multi-modal sites.

L AN D FOR URBAN REN E WAL

The outlook for investment in urban renewal declined slightly this quarter but remains positive. As more people move toward urban areas, investment in land for urban renewal will continue to increase. This trend is not lim-ited to the major markets as secondary and even tertiary markets like Gainesville are focused on urban design and development. The real question is how long the trend will continue as Generation Y ages and starts having kids. Will urban areas continue to see a renaissance or will Gen. Y move to the burbs with better schools and more room for the kids to play?



May 2016

17

SECTION 8: BUSINESS AND CAPITAL AVAILABILITY OUTLOOK

C AP ITAL AVAI L ABI LIT Y

The outlook for capital availability declined this quarter for both acquisition and development capital. The upheaval in the capital markets this quarter along with uncertainty regarding the implementation of several government rules from Dodd-Frank and Basel III are having a negative im-pact on the capital markets and our respondents.

The increased regulation is going to have a chilling effect on debt capital, particularly the CMBS markets which account for approximately 30% of total commercial real estate debt capital. With a tremendous number of vintage CMBS loans coming due this year, will there be enough debt capital available to refinance those loans? That is question that is weighting on our respondents minds at this time.

-‐1

-‐0.5

0

0.5

1

06-‐Q1

06-‐Q4

07-‐Q3

08-‐Q2

09-‐Q1

09-‐Q4

10-‐Q3

11-‐Q2

12-‐Q1

12-‐Q4

13-‐Q3

14-‐Q2

15-‐Q2

Capital Availability

Capital for Development Capital for AcquisiBons

Expecting Increase

Expecting Decrease

Expecting No Change

UF COM M ERCIA L RE AL ESTATE SENTI M ENT I N DEX

The UF Commercial Real Estate Sentiment Index re-mained stable and positive this quarter at 7.14. Florida’s improved economy along with improved job growth and record tourism are having a positive impact on our respon-dents’ outlook as real estate markets continue to thrive across the state.

The index is being driven by growing optimism from developers, owners and other service providers. Improved fundamentals are generating the need for new develop-ment across several sectors, which is boosting the outlook for developers and other service providers who generally focus on the development side of the business.

The least optimistic of the respondents are the appraisers, lenders and brokers. Coming implementation of new rules from Dodd-Frank and Basel III threaten to limit the num-ber of transactions and limit the amount of debt available to the market. This has a direct impact on the earning potential for the three professions at the bottom. Their pes-simism is expected to continue until better clarity is known on the impact of those regulations.

4

4.5

5

5.5

6

6.5

7

7.5

8

8.5

06-‐

06-‐

07-‐

08-‐

09-‐

09-‐

10-‐

11-‐

12-‐

12-‐

13-‐

14-‐

15-‐

UF Commercial Real Estate Sen3ment Index

2.5

3.5

4.5

5.5

6.5

7.5

8.5

06-‐Q4 07-‐Q3 08-‐Q2 09-‐Q1 09-‐Q4 10-‐Q3 11-‐Q2 12-‐Q1 12-‐Q4 13-‐Q3 14-‐Q2 15-‐Q2

UF Commercial Real Estate Sen3ment Index

(by profession)

Owner/investor/manager Lender

Broker Developer

Appraiser Other service provider, (consultant, legal other)



May 2016

18

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

SF Development Condominiums

Apartments -‐ Low Inc. Apartments -‐ Mkt Rent

Condo Conversions Warehouse and Dist.

Flex Space, R&D Office -‐ Class A Office -‐ Class B

Large Retail Neighborhood Centers

Strip Retail Hospitality -‐ Business Hospitality -‐ Economy

Free-‐standing-‐net leased

Investors Q1-‐16

Private RE Co.s REITs InsYtuYon Foreign

SECTION 9: DOMINANT INVESTORS

Respondents were asked to indicate which of five investor groups they perceived to be the most active for each type of property they analyze. Private owners have returned as

the dominant buyer across most property types. However, real estate companies and REITS remain strong buyers.

SECTION 10: CHARACTERISTICS OF SURVEY RESPONDENTS

P ROFESSION OF RESP ON DENTS

Survey responses increased this quarter to 80 respondents. Approximately 50 % of the respondents reported being an appraiser; 80% with designations of MAI, SREA or SRPA.

4

4

5

11

3

4

3

2

11

10

7

9

8

4

2

10

43

32

17

33

12

10

2

8

3

0

0

0

13

11

3

7

0 20 40 60 80 100 120

15-‐Q1

15-‐Q2

15-‐Q3

16-‐Q1

Owner/ Investor Lender Broker

Developer Appraiser: MAI, SREA, SRPA Appraiser: Other DesignaLon

Other Appraiser/ Consultant Other Service Provider

The next largest groups were developers and owners.



May 2016

19

MARKETS OF FAM I LIARIT Y

Each respondent was asked to select up to four regional markets with which they are familiar. In the latest sur-vey, these choices accumulated to 113 observations. The

P ROP ERT Y T YP ES OF FAM I LIARIT Y

Each respondent was asked to select up to three proper-ty types with which they were familiar. Altogether, 164 selections were made in the latest survey round. Single family development was selected by 17 respondents while condominium development was selected by 3. The largest

highest number of responses was for the Tampa-St. Pete market with 16 responses. The lowest respondent support came from the Treasure Coast with 3.

response for commercial property was in Apartments with 25 responses. The lowest response was for Hospitality - Economy with 1.

17

10

5

11

15

12

5

10

12

10

4

7

2

4

0

3

10

4

7

6

5

6

5

7

19

10

8

12

6

6

3

8

19

15

11

16

7

7

3

8

8

12

4

8

9

7

4

10

8

8

2

7

15-‐Q1

15-‐Q2

15-‐Q3

16-‐Q1

Dade Broward Palm Beach Treasure Coast

Southwest coast Daytona Beach Orlando Lakeland -‐Winter Haven

Tampa -‐St Petersburg Sarasota -‐Bradenton Jacksonville Gainesville -‐ Ocala

Pensacola -‐ Tallahassee

20

17

8

17

9

12

6

3

2

0

0

3

31

21

14

25

3

0

1

2

8

12

3

13

4

7

3

12

14

11

7

14

36

24

6

23

9

7

2

6

14

12

4

11

19

13

6

14

9

6

3

4

6

5

0

1

14

7

7

11

8

5

2

5

0 50 100 150 200 250

15-‐Q1

15-‐Q2

15-‐Q3

16-‐Q1

Single Family Development

Condominium Development

Apartments -‐ Low Income


Condo Conversion

Warehouse & Dist.

Flex Space, R & D

Office: Class A

Office: Class B

Retail -‐ Large


Strip Centers

Hospitality-‐ Business

Hospitality -‐ Economy

Free Standing



May 2016

20

SECTION 11: DETAILS OF CAP RATES, YIELDS AND EXPECTED CHANGES

Table 1 summarizes estimates of cap rates and yields for twelve property types over the last four quarters of the survey. In addition, this table shows the distribution of expectations for changes in each reported cap rate and yield. In particular, the table reports the percent of respon-dents expecting each cap rate and yield to either rise or fall in the future. Excluded from this table is the percentage of respondents whom are expecting no change. This third percentage can be computed as 100 less the two percent-ages reported. Since prior sections discuss the content of Table 1, further comment is not given here. The table is simply provided as a reference to facilitate application of the survey results.

© 2012-16 University of Florida Bergstrom Real Estate Center 21

Florida Apartments - Market Rental

Condo Conversion

Warehouse and Dist.

Flex Space, R & D

Office: Class A

Office: Class B

Retail - Large

Neighbor-hood Centers

Strip Centers

Free Standing

Cap RatesQ1-16

Cap Rate 6.1% 5.0% 7.9% 7.5% 6.8% 8.1% 7.0% 7.0% 8.5% 6.1%Percent Expecting Rise 27.3% 0.0% 18.2% 10.0% 36.4% 9.5% 25.0% 20.0% 16.7% 10.0%Percent Expecting Fall 0.0% 0.0% 18.2% 0.0% 0.0% 4.8% 0.0% 10.0% 8.3% 0.0%

Q3-15Cap Rate 6.1% 7.5% 7.0% 7.4% 6.4% 7.6% 6.5% 6.3% 6.7% 6.1%

Percent Expecting Rise 9.1% 0.0% 0.0% 33.3% 16.7% 0.0% 100.0% 33.3% 33.3% 42.9%Percent Expecting Fall 9.1% 100.0% 100.0% 33.3% 16.7% 20.0% 0.0% 0.0% 16.7% 42.9%

Q2-15Cap Rate 6.1% 7.3% 7.6% 6.8% 7.9% 6.6% 6.5% 8.0% 7.0%

Percent Expecting Rise 18.8% 0.0% 28.6% 22.2% 8.7% 60.0% 27.3% 0.0% 16.7%Percent Expecting Fall 18.8% 20.0% 0.0% 22.2% 13.0% 0.0% 18.2% 25.0% 33.3%

Q1-15Cap Rate 6.3% 4.5% 7.6% 8.5% 7.5% 8.1% 6.8% 6.8% 8.1% 6.5%


YieldsQ1-16Yield 9.7% 7.0% 9.9% 9.9% 9.4% 9.7% 9.9% 8.4% 9.6% 8.2%


Q3-15Yield 6.9% 10.0% 11.0% 8.1% 9.0% 10.0% 8.0% 8.1% 7.2%


Q2-15Yield 9.2% 9.4% 10.3% 9.2% 9.3% 8.9% 9.5% 11.5% 7.6%

Percent Expecting Rise 13.3% 14.3% 16.7% 37.5% 5.6% 40.0% 10.0% 11.1% 33.3%Percent Expecting Fall 6.7% 14.3% 0.0% 0.0% 11.1% 20.0% 30.0% 22.2% 16.7%

Q1-15Yield 9.0% 9.7% 10.3% 8.6% 10.1% 8.7% 8.8% 9.7% 7.7%




May 2016

22

SECTION 12: LOCAL MARKETS

Starting with the 3rd quarter of 2011, we have changed the presentation of the local market data to a more graphical format. This makes it easier, at a glance, to get a sense of what is happening in each market. As part of the transition you will notice that each report is broken up into property types. Additionally, you will see a table with indicating the direction of our respondents’ expectations for the various indicators. Please use the following legend to interpret the results.

For future expectations you will see the following symbols. Please refer to their definition for interpretation:

Increasing trend. An upward but diagonal pointing arrow indicates a slightly positive or increasing trend. A side pointing arrow indicates a neutral trend. A downward but diagonal pointing arrow indicates a slightly negative or slightly declining trend. A downward pointing arrow indicates a decreasing or negative trend.


Future ExpectationsApartments Condo Conversion

Cap RatesYieldsInvestment OutlookOccupancyRents

Regional Market Report for DadeM

ulti

-Fam

ily P

rope

rtie

s

4.83 4.834.84

4.80

4.77

4.78

4.79

4.80

4.81

4.82

4.83

4.84

Q3‐15 Q4‐15 Q1‐16

Cap Rate Trend

Apartments ‐Market Condo Conversions

8.31 8.31

10.25

7.82

0.00

2.00

4.00

6.00

8.00

10.00

12.00

Q3‐15 Q4‐15 Q1‐16

Yield Trend


Private Buyers, 100%

Investor Profile ‐ Condo Conversion

Private Buyers20%

R.E. Companies

20%Institutions

60%

Investor Profile ‐Apartments


Regional Market Report for Dade

Future ExpectationsWarehouse Flex Space


Indu

stria

l Prope

rties

5.95 5.95

6.75 6.75

6.51

5.40

5.60

5.80

6.00

6.20

6.40

6.60

6.80

7.00

Q3‐15 Q4‐15 Q1‐16

Cap Rate Trend

Warehouse Flex Space

8.00 8.00

9.20 9.20

10.29

0.00

2.00

4.00

6.00

8.00

10.00

12.00

Q3‐15 Q4‐15 Q1‐16

Yield Trend


R.E. Companies, 100%

Investor Profile ‐ Flex SpaceInvestor Profile ‐Warehouse



Future ExpectationsOffice: Class A Office: Class B


Office Prop

ertie

s

5.66 5.665.95

6.84 6.846.61

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

Q3‐15 Q4‐15 Q1‐16

Cap Rate Trend

Office:Class A Office:Class B

8.07 8.07

9.798.17 8.17

10.63

0.00

2.00

4.00

6.00

8.00

10.00

12.00

Q3‐15 Q4‐15 Q1‐16

Yield Trend



Investor Profile ‐ Office: Class B

Private Buyers40%

R.E. Companies20%

Institutions40%

Investor Profile ‐ Office: Class A



Future Expectations

Retail‐Large Neighborhood Centers Strip Centers Free StandingCap RatesYieldsInvestment OutlookOccupancyRents

Retail Prop

ertie

s

Q3‐15 Q4‐15 Q1‐16Retail‐Large 5.17 5.17 5.88Neighborhood Retail 6.26 6.26Strip Centers 6.26 6.26 6.57Free Standing 5.85 5.85 5.13

5.00

5.20

5.40

5.60

5.80

6.00

6.20

6.40

6.60

6.80

Cap Rate Trend

Q3‐15 Q4‐15 Q1‐16Retail‐Large 7.45 7.45 10.71Neighborhood Retail 10.17 10.17Strip Centers 10.17 10.17 10.77Free Standing 6.61 6.61 8.77

5.00

6.00

7.00

8.00

9.00

10.00

11.00

12.00

Yield Trend

PrivateBuyers,100%

Investor Profile ‐Neighborhood Center

Institutions100%

Investor Profile ‐ Retail‐Large

Private Buyers100%

ForeignBuyers100…

Investor Profile ‐Strip Centers

Private Buyers100%

Investor Profile ‐Free Standing




Regional Market Report for BrowardM

ulti

-Fam

ily P

rope

rtie

s

4.85 4.85

4.80

4.76

4.70

4.72

4.74

4.76

4.78

4.80

4.82

4.84

4.86

Q3‐15 Q4‐15 Q1‐16

Cap Rate Trend


8.79 8.79 8.89

6.46

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

10.00

Q3‐15 Q4‐15 Q1‐16

Yield Trend




R.E. Companies

17%

REITs17%

Institutions66%



Regional Market Report for Broward



Indu

stria

l Prope

rties

5.97 5.97 6.01

6.76 6.76

6.47

5.40

5.60

5.80

6.00

6.20

6.40

6.60

6.80

7.00

Q3‐15 Q4‐15 Q1‐16

Cap Rate Trend


8.48 8.48

9.29

9.67 9.67

8.93

7.80

8.00

8.20

8.40

8.60

8.80

9.00

9.20

9.40

9.60

9.80

Q3‐15 Q4‐15 Q1‐16

Yield Trend


R.E. Companies, 50%

Foreign Buyers, 50%

Investor Profile ‐ Flex Space

Private Buyers50%

REITs50%

Investor Profile ‐Warehouse





Office Prop

ertie

s

5.67 5.675.91

6.85 6.856.56

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

Q3‐15 Q4‐15 Q1‐16

Cap Rate Trend


8.55 8.55

8.43

8.65 8.65

9.27

8.00

8.20

8.40

8.60

8.80

9.00

9.20

9.40

Q3‐15 Q4‐15 Q1‐16

Yield Trend




Private Buyers33%

Institutions67%




Future Expectations


Retail Prop

ertie

s

Q3‐15 Q4‐15 Q1‐16Retail‐Large 5.19 5.19 5.84Neighborhood Retail 6.28 6.28 5.53Strip Centers 6.28 6.28 6.53Free Standing 5.86 5.86 5.09

5.00

5.20

5.40

5.60

5.80

6.00

6.20

6.40

6.60

6.80

Cap Rate Trend


5.00

6.00

7.00

8.00

9.00

10.00

11.00

Yield Trend

PrivateBuyers,100%

REITs, 100%


Institutions100%


Private Buyers100%

ForeignBuyers100…


Private Buyers100%





Regional Market Report for Palm BeachM

ulti

-Fam

ily P

rope

rtie

s

5.17 5.17

5.495.45

5.00

5.10

5.20

5.30

5.40

5.50

5.60

Q3‐15 Q4‐15 Q1‐16

Cap Rate Trend


7.76 7.76

9.13

6.71

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

10.00

Q3‐15 Q4‐15 Q1‐16

Yield Trend




Private Buyers25%

R.E. Companies

25%REITs25%

Institutions25%



Regional Market Report for Palm Beach



Indu

stria

l Prope

rties

6.29 6.29

7.08 7.087.16

5.80

6.00

6.20

6.40

6.60

6.80

7.00

7.20

7.40

Q3‐15 Q4‐15 Q1‐16

Cap Rate Trend


7.45 7.45

8.64 8.649.18

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

10.00

Q3‐15 Q4‐15 Q1‐16

Yield Trend








Office Prop

ertie

s

5.99 5.99

6.60

7.17 7.17 7.26

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

Q3‐15 Q4‐15 Q1‐16

Cap Rate Trend


7.52 7.52

8.687.61 7.61

9.52

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

10.00

Q3‐15 Q4‐15 Q1‐16

Yield Trend




Private Buyers100%




Future Expectations


Retail Prop

ertie

s

Q3‐15 Q4‐15 Q1‐16Retail‐Large 5.51 5.51Neighborhood Retail 6.60 6.60Strip Centers 6.60 6.60 7.23Free Standing 6.18 6.18 5.78

5.00

5.50

6.00

6.50

7.00

7.50

Cap Rate Trend

Q3‐15 Q4‐15 Q1‐16Retail‐Large 6.90 6.90Neighborhood Retail 9.62 9.62Strip Centers 9.62 9.62 9.66Free Standing 6.06 6.06 7.66

5.005.506.006.507.007.508.008.509.009.5010.00

Yield Trend

PrivateBuyers,100%



Private Buyers100%

ForeignBuyers100…


Private Buyers100%

R.E. Companies

33%





Regional Market Report for Treasure CoastM

ulti

-Fam

ily P

rope

rtie

s

6.05

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

Q3‐15 Q4‐15 Q1‐16

Cap Rate Trend


10.81

0.00

2.00

4.00

6.00

8.00

10.00

12.00

Q3‐15 Q4‐15 Q1‐16

Yield Trend



Private Buyers50%

Institutions50%



Regional Market Report for Treasure Coast



Indu

stria

l Prope

rties

7.05 7.05

7.73

6.60

6.80

7.00

7.20

7.40

7.60

7.80

Q3‐15 Q4‐15 Q1‐16

Cap Rate Trend


8.49 8.49

10.85

0.00

2.00

4.00

6.00

8.00

10.00

12.00

Q3‐15 Q4‐15 Q1‐16

Yield Trend


Private Buyers, 50%

R.E. Companies, 50%






Office Prop

ertie

s

7.14 7.14

7.82

6.80

7.00

7.20

7.40

7.60

7.80

8.00

Q3‐15 Q4‐15 Q1‐16

Cap Rate Trend


7.46 7.46

11.19

0.00

2.00

4.00

6.00

8.00

10.00

12.00

Q3‐15 Q4‐15 Q1‐16

Yield Trend



Investor Profile ‐ Office: Class BInvestor Profile ‐ Office: Class A



Future Expectations


Retail Prop

ertie

s

Q3‐15 Q4‐15 Q1‐16Retail‐LargeNeighborhood RetailStrip CentersFree Standing 6.15 6.15 6.35

5.00

5.20

5.40

5.60

5.80

6.00

6.20

6.40

6.60

Cap Rate Trend

Q3‐15 Q4‐15 Q1‐16Retail‐LargeNeighborhood RetailStrip CentersFree Standing 5.90 5.90 9.34

5.005.506.006.507.007.508.008.509.009.5010.00

Yield Trend

PrivateBuyers,100%



ForeignBuyers100%


Private Buyers100%





Regional Market Report for Southwest CoastM

ulti

-Fam

ily P

rope

rtie

s

5.63 5.63

5.78

5.55

5.60

5.65

5.70

5.75

5.80

Q3‐15 Q4‐15 Q1‐16

Cap Rate Trend


10.65 10.65

7.95

0.00

2.00

4.00

6.00

8.00

10.00

12.00

Q3‐15 Q4‐15 Q1‐16

Yield Trend



Private Buyers50%

REITs50%



Regional Market Report for Southwest Coast



Indu

stria

l Prope

rties

6.76 6.76

6.99

7.45

6.40

6.60

6.80

7.00

7.20

7.40

7.60

Q3‐15 Q4‐15 Q1‐16

Cap Rate Trend


10.34 10.34

8.35

7.99

0.00

2.00

4.00

6.00

8.00

10.00

12.00

Q3‐15 Q4‐15 Q1‐16

Yield Trend




Private Buyers100%






Office Prop

ertie

s

6.46 6.46

6.89

7.64 7.647.55

5.80

6.00

6.20

6.40

6.60

6.80

7.00

7.20

7.40

7.60

7.80

Q3‐15 Q4‐15 Q1‐16

Cap Rate Trend


10.41 10.41

7.49

10.50 10.50

8.33

0.00

2.00

4.00

6.00

8.00

10.00

12.00

Q3‐15 Q4‐15 Q1‐16

Yield Trend


Private Buyers, 67%

R.E. Companies, 33%


Private Buyers100%




Future Expectations


Retail Prop

ertie

s

Q3‐15 Q4‐15 Q1‐16Retail‐Large 5.98 5.98 6.82Neighborhood Retail 6.51Strip Centers 7.51Free Standing 6.65 6.65 6.07

5.00

5.50

6.00

6.50

7.00

7.50

8.00

Cap Rate Trend

Q3‐15 Q4‐15 Q1‐16Retail‐Large 9.78 9.78 8.40Neighborhood Retail 7.22Strip Centers 8.47Free Standing 8.94 8.94 6.47

5.00

6.00

7.00

8.00

9.00

10.00

11.00

Yield Trend

PrivateBuyers,100%

REITs, 100%


Institutions100%


Private Buyers100%

ForeignBuyers100…


Private Buyers100%





Regional Market Report for Daytona BeachM

ulti

-Fam

ily P

rope

rtie

s

6.46

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

Q3‐15 Q4‐15 Q1‐16

Cap Rate Trend


13.13

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

Q3‐15 Q4‐15 Q1‐16

Yield Trend



R.E. Companies

50%REITs50%



Regional Market Report for Daytona Beach



Indu

stria

l Prope

rties

7.66 7.66 7.68

8.14

7.40

7.50

7.60

7.70

7.80

7.90

8.00

8.10

8.20

Q3‐15 Q4‐15 Q1‐16

Cap Rate Trend


9.11 9.11

13.54

13.18

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

Q3‐15 Q4‐15 Q1‐16

Yield Trend




Private Buyers100%






Office Prop

ertie

s

7.57

8.55 8.55

8.23

7.00

7.20

7.40

7.60

7.80

8.00

8.20

8.40

8.60

8.80

Q3‐15 Q4‐15 Q1‐16

Cap Rate Trend


12.68

9.28 9.28

13.52

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

Q3‐15 Q4‐15 Q1‐16

Yield Trend




Institutions100%




Future Expectations


Retail Prop

ertie

s

Q3‐15 Q4‐15 Q1‐16Retail‐Large 6.88 6.88 7.51Neighborhood Retail 7.97 7.97 7.20Strip Centers 7.97 7.97 8.20Free Standing

5.00

5.50

6.00

6.50

7.00

7.50

8.00

8.50

Cap Rate Trend

Q3‐15 Q4‐15 Q1‐16Retail‐Large 8.56 8.56 13.59Neighborhood Retail 11.28 11.28 12.41Strip Centers 11.28 11.28 13.66Free Standing

5.006.007.008.009.0010.0011.0012.0013.0014.0015.00

Yield Trend

PrivateBuyers,100%

R.E. Companies,

33%


Institutions100%


Private Buyers100%

ForeignBuyers100…


Private Buyers100%





Regional Market Report for OrlandoM

ulti

-Fam

ily P

rope

rtie

s

5.58 5.58

6.05

5.30

5.40

5.50

5.60

5.70

5.80

5.90

6.00

6.10

Q3‐15 Q4‐15 Q1‐16

Cap Rate Trend


10.19 10.19

10.71

9.90

10.00

10.10

10.20

10.30

10.40

10.50

10.60

10.70

10.80

Q3‐15 Q4‐15 Q1‐16

Yield Trend



REITs40%

Institutions60%



Regional Market Report for Orlando



Indu

stria

l Prope

rties

6.70 6.70

7.26

7.50 7.50

7.72

6.00

6.20

6.40

6.60

6.80

7.00

7.20

7.40

7.60

7.80

8.00

Q3‐15 Q4‐15 Q1‐16

Cap Rate Trend


9.88 9.88

11.12

11.07 11.07

10.76

9.20

9.40

9.60

9.80

10.00

10.20

10.40

10.60

10.80

11.00

11.20

11.40

Q3‐15 Q4‐15 Q1‐16

Yield Trend


Private Buyers, 67%

Foreign Buyers, 33%


Private Buyers75%

R.E. Companies25%






Office Prop

ertie

s

6.41 6.41

7.16

7.59 7.59 7.82

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

Q3‐15 Q4‐15 Q1‐16

Cap Rate Trend


9.95 9.95

10.2610.04 10.04

11.10

9.20

9.40

9.60

9.80

10.00

10.20

10.40

10.60

10.80

11.00

11.20

Q3‐15 Q4‐15 Q1‐16

Yield Trend


Private Buyers, 50%

R.E. Companies, 50%


Institutions100%




Future Expectations


Retail Prop

ertie

s


5.00

5.50

6.00

6.50

7.00

7.50

8.00

Cap Rate Trend


5.00

6.00

7.00

8.00

9.00

10.00

11.00

12.00

13.00

Yield Trend

PrivateBuyers,100%

R.E. Companies,

50%


Institutions100%


Private Buyers100%

ForeignBuyers100…


Private Buyers100%

REITs33%





Regional Market Report for LakelandM

ulti

-Fam

ily P

rope

rtie

s

6.53 6.53

6.07

5.80

5.90

6.00

6.10

6.20

6.30

6.40

6.50

6.60

Q3‐15 Q4‐15 Q1‐16

Cap Rate Trend


8.55 8.55

12.81

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

Q3‐15 Q4‐15 Q1‐16

Yield Trend



REITs100%



Regional Market Report for Lakeland



Indu

stria

l Prope

rties

7.66 7.66

7.29

7.75

7.00

7.10

7.20

7.30

7.40

7.50

7.60

7.70

7.80

Q3‐15 Q4‐15 Q1‐16

Cap Rate Trend


8.24 8.24

13.22

12.85

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

Q3‐15 Q4‐15 Q1‐16

Yield Trend


Foreign Buyers, 100%


Private Buyers67%

R.E. Companies33%






Office Prop

ertie

s

7.19

8.54 8.54

7.84

6.50

7.00

7.50

8.00

8.50

9.00

Q3‐15 Q4‐15 Q1‐16

Cap Rate Trend


12.36

8.40 8.40

13.19

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

Q3‐15 Q4‐15 Q1‐16

Yield Trend




Institutions100%




Future Expectations


Retail Prop

ertie

s

Q3‐15 Q4‐15 Q1‐16Retail‐Large 6.88 6.88 7.12Neighborhood Retail 7.97 7.97 6.81Strip Centers 7.97 7.97 7.81Free Standing 6.37

5.00

5.50

6.00

6.50

7.00

7.50

8.00

8.50

Cap Rate Trend


5.00

6.00

7.00

8.00

9.00

10.00

11.00

12.00

13.00

14.00

Yield Trend

PrivateBuyers,100%

REITs, 50%


Institutions100%


Private Buyers100%

ForeignBuyers100…


Private Buyers100%





Regional Market Report for TampaM

ulti

-Fam

ily P

rope

rtie

s

5.82 5.82

5.78

5.74

5.68

5.70

5.72

5.74

5.76

5.78

5.80

5.82

5.84

Q3‐15 Q4‐15 Q1‐16

Cap Rate Trend


9.48 9.48

8.45

6.03

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

10.00

Q3‐15 Q4‐15 Q1‐16

Yield Trend


R.E. Companies,

100%


R.E. Companies

22%

REITs45%

Institutions33%



Regional Market Report for Tampa



Indu

stria

l Prope

rties

6.94 6.947.00

7.74 7.74

7.46

6.40

6.60

6.80

7.00

7.20

7.40

7.60

7.80

Q3‐15 Q4‐15 Q1‐16

Cap Rate Trend


9.16 9.16 8.86

10.36 10.36

8.49

0.00

2.00

4.00

6.00

8.00

10.00

12.00

Q3‐15 Q4‐15 Q1‐16

Yield Trend




Private Buyers100%






Office Prop

ertie

s

6.65 6.65

6.89

7.83 7.83

7.55

6.00

6.20

6.40

6.60

6.80

7.00

7.20

7.40

7.60

7.80

8.00

Q3‐15 Q4‐15 Q1‐16

Cap Rate Trend


9.24 9.24

8.00

9.33 9.33

8.84

7.00

7.50

8.00

8.50

9.00

9.50

Q3‐15 Q4‐15 Q1‐16

Yield Trend


Private Buyers, 71%

R.E. Companies, 29%


Private Buyers67%

Institutions33%




Future Expectations


Retail Prop

ertie

s


5.00

5.50

6.00

6.50

7.00

7.50

8.00

Cap Rate Trend


5.00

6.00

7.00

8.00

9.00

10.00

11.00

12.00

Yield Trend

Private

Buyers,

100%

R.E. Companies,

100%


Private Buyers50%

Institutions50%


Private Buyers100%

ForeignBuyers100…


Private Buyers100%

R.E. Companies

33%





Regional Market Report for SarasotaM

ulti

-Fam

ily P

rope

rtie

s

5.71 5.71

5.96

5.55

5.60

5.65

5.70

5.75

5.80

5.85

5.90

5.95

6.00

Q3‐15 Q4‐15 Q1‐16

Cap Rate Trend


8.93 8.93

8.09

7.60

7.80

8.00

8.20

8.40

8.60

8.80

9.00

Q3‐15 Q4‐15 Q1‐16

Yield Trend



Private Buyers25%

R.E. Companies

25%REITs25%

Institutions25%



Regional Market Report for Sarasota



Indu

stria

l Prope

rties

7.18

7.64

6.90

7.00

7.10

7.20

7.30

7.40

7.50

7.60

7.70

Q3‐15 Q4‐15 Q1‐16

Cap Rate Trend


8.50

8.14

7.90

8.00

8.10

8.20

8.30

8.40

8.50

8.60

Q3‐15 Q4‐15 Q1‐16

Yield Trend




Private Buyers100%






Office Prop

ertie

s

7.71 7.71

7.73

7.71

7.71

7.72

7.72

7.73

7.73

7.74

Q3‐15 Q4‐15 Q1‐16

Cap Rate Trend


8.79 8.79

8.48

8.30

8.35

8.40

8.45

8.50

8.55

8.60

8.65

8.70

8.75

8.80

8.85

Q3‐15 Q4‐15 Q1‐16

Yield Trend


Private Buyers, 33%

R.E. Companies, 67%




Future Expectations


Retail Prop

ertie

s

Q3‐15 Q4‐15 Q1‐16Retail‐Large 6.05 6.05Neighborhood Retail 7.14 7.14 6.70Strip Centers 7.14 7.14Free Standing 6.72 6.72 6.26

5.00

5.50

6.00

6.50

7.00

7.50

Cap Rate Trend


5.00

6.00

7.00

8.00

9.00

10.00

11.00

12.00

Yield Trend

PrivateBuyers,100%

REITs, 100%



ForeignBuyers100%


Private Buyers100%

R.E. Companies

33%





Regional Market Report for JacksonvilleM

ulti

-Fam

ily P

rope

rtie

s

6.16 6.16

6.15

6.14

6.14

6.15

6.15

6.16

6.16

6.17

Q3‐15 Q4‐15 Q1‐16

Cap Rate Trend


10.81 10.81

10.09

9.60

9.80

10.00

10.20

10.40

10.60

10.80

11.00

Q3‐15 Q4‐15 Q1‐16

Yield Trend



Private Buyers33%

REITs50%

Institutions17%



Regional Market Report for Jacksonville



Indu

stria

l Prope

rties

7.28 7.287.36

8.08 8.08

7.82

6.80

7.00

7.20

7.40

7.60

7.80

8.00

8.20

Q3‐15 Q4‐15 Q1‐16

Cap Rate Trend


10.50 10.50 10.50

11.70 11.70

10.14

9.00

9.50

10.00

10.50

11.00

11.50

12.00

Q3‐15 Q4‐15 Q1‐16

Yield Trend




Private Buyers100%






Office Prop

ertie

s

6.99 6.99

7.26

8.17 8.17

7.92

6.20

6.40

6.60

6.80

7.00

7.20

7.40

7.60

7.80

8.00

8.20

8.40

Q3‐15 Q4‐15 Q1‐16

Cap Rate Trend


10.57 10.57

9.64

10.67 10.67

10.48

9.00

9.20

9.40

9.60

9.80

10.00

10.20

10.40

10.60

10.80

Q3‐15 Q4‐15 Q1‐16

Yield Trend




REITs33%

Institutions67%




Future Expectations


Retail Prop

ertie

s


5.00

5.50

6.00

6.50

7.00

7.50

8.00

Cap Rate Trend


5.00

6.00

7.00

8.00

9.00

10.00

11.00

12.00

13.00

14.00

Yield Trend

PrivateBuyers,100%

REITs, 100%



ForeignBuyers100%


Private Buyers100%

R.E. Companies

100%





Regional Market Report for Gainesville/OcalaM

ulti

-Fam

ily P

rope

rtie

s

6.51 6.51 6.51

6.47

6.45

6.46

6.47

6.48

6.49

6.50

6.51

6.52

Q3‐15 Q4‐15 Q1‐16

Cap Rate Trend


11.81 11.81

9.68

7.26

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

Q3‐15 Q4‐15 Q1‐16

Yield Trend


R.E. Companies,

100%


Private Buyers34%

R.E. Companies

33%

REITs33%



Regional Market Report for Gainesville/Ocala



Indu

stria

l Prope

rties

0.00

0.20

0.40

0.60

0.80

1.00

1.20

Q3‐15 Q4‐15 Q1‐16

Cap Rate Trend


0.00

0.20

0.40

0.60

0.80

1.00

1.20

Q3‐15 Q4‐15 Q1‐16

Yield Trend







Office Prop

ertie

s

7.34 7.34

7.63

8.52 8.52

8.28

6.60

6.80

7.00

7.20

7.40

7.60

7.80

8.00

8.20

8.40

8.60

8.80

Q3‐15 Q4‐15 Q1‐16

Cap Rate Trend


11.57 11.57

9.23

11.66 11.66

10.06

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

Q3‐15 Q4‐15 Q1‐16

Yield Trend




Private Buyers50%

R.E. Companies50%




Future Expectations


Retail Prop

ertie

s


5.00

5.50

6.00

6.50

7.00

7.50

8.00

8.50

Cap Rate Trend


5.006.007.008.009.0010.0011.0012.0013.0014.0015.00

Yield Trend

PrivateBuyers,1… R.E.

Companies, 50%

Foreign Buyers, 50%


REITs100%


Private Buyers50%

R.E. Companies

50%

Foreign

Buyers

100%


Private Buyers100%

R.E. Companies

100%





Regional Market Report for Tallahassee/PanhandleM

ulti

-Fam

ily P

rope

rtie

s

6.91 6.91

10.1510.11

0.00

2.00

4.00

6.00

8.00

10.00

12.00

Q3‐15 Q4‐15 Q1‐16

Cap Rate Trend


11.11 11.11

8.55

6.13

0.00

2.00

4.00

6.00

8.00

10.00

12.00

Q3‐15 Q4‐15 Q1‐16

Yield Trend


R.E. Companies,

100%


Private Buyers50%

R.E. Companies

50%



Regional Market Report for Tallahassee/Panhandle



Indu

stria

l Prope

rties

8.04 8.04

11.37

8.83 8.83

0.00

2.00

4.00

6.00

8.00

10.00

12.00

Q3‐15 Q4‐15 Q1‐16

Cap Rate Trend


10.80 10.80

8.96

12.00 12.00

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

Q3‐15 Q4‐15 Q1‐16

Yield Trend



Private Buyers100%






Office Prop

ertie

s

7.74 7.74

8.92 8.92

11.92

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

Q3‐15 Q4‐15 Q1‐16

Cap Rate Trend


10.88 10.88

10.97 10.97

8.94

0.00

2.00

4.00

6.00

8.00

10.00

12.00

Q3‐15 Q4‐15 Q1‐16

Yield Trend






Future Expectations


Retail Prop

ertie

s

Q3‐15 Q4‐15 Q1‐16Retail‐LargeNeighborhood Retail 8.35 8.35Strip Centers 8.35 8.35 11.89Free Standing

5.00

6.00

7.00

8.00

9.00

10.00

11.00

12.00

13.00

Cap Rate Trend

Q3‐15 Q4‐15 Q1‐16Retail‐LargeNeighborhood Retail 12.98 12.98Strip Centers 12.98 12.98 9.07Free Standing

5.00

6.00

7.00

8.00

9.00

10.00

11.00

12.00

13.00

14.00

Yield Trend

PrivateBuyers,100%



Private Buyers100%

ForeignBuyers100…


Private Buyers100%


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