CAP RATE SURVEY

FIRST HALF 2013

Office CBD | Key Ratios

EAST
MIDWEST

SOUTH

WEST

I
I
I
I
I

9.75% - 10.75%
8.25% - 8.75%
9.00% - 10.00%
6.50% -7.00%
8.50% - 9.25%
8.00% - 9.00%
8.00% - 9.00%
8.00% - 9.00%
8.50% - 9.50%
8.00% - 8.50%
6.75% - 7.25%
8.00% - 10.00%
7.50% - 8.50%

I
I
I

I
I
I
I
I
I
I
I
I
I

I
I

I
I

N/A
7.50% - 8.00%
9.50% - 10.50%
8.00% - 8.50%
8.00% - 8.75%
8.00% - 9.50%
7.50% - 8.50%
8.00% - 9.00%
8.00% - 8.50%
7.50% - 8.00%
6.50% - 7.50%
7.50% - 8.50%
7.00% - 8.00%

N/A

I
I

8.50% - 10.00%
7.75% - 8.50%
9.00% - 11.00%
9.00%
10.50% - 11.00%
11.00% - 12.00%
7.00% - 7.50%
9.00% - 9.50%
8.00% - 9.00%
10.00% - 11.00%
9.25% - 10.25%

I
I
I
I
I
I

9.00% - 9.50%
7.50% - 8.00%
8.00% - 10.00%
7.50% - 8.50%
9.50% - 10.50%
10.00% - 11.00%
6.75% - 7.75%
9.00% - 9.50%
8.00% - 9.00%
8.75% - 9.25%
8.75% - 9.75%

I
I
I

9.25% - 10.25%
6.50% - 7.00%
8.00% - 9.00%
5.50% - 6.00%
6.50% - 7.50%
7.00% - 8.00%
7.00% - 8.00%
7.50% - 8.00%
7.50% - 8.00%
7.00% - 7.50%
4.00% - 6.00%
7.00% - 8.00%
5.75% - 6.50%

I
I
I

8.50% - 9.50%
10.00% - 10.50%
N/A
10.00% - 11.50%
12.00% - 14.00%
12.00% - 13.00%
11.00% - 12.00%
10.00% - 11.00%
10.50% - 12.00%

N/A
6.50% - 7.00%
8.50% - 9.50%
7.50% - 8.00%
6.50% - 7.25%
7.00% - 7.50%
6.75% - 7.75%
7.50% - 8.00%
7.75% - 8.25%
7.00% - 7.50%
5.50% - 6.00%
7.00% - 8.00%
6.00% - 6.50%

N/A
I
I

8.50% - 10.00%
10.00% - 10.50%
10.00% - 11.00%
9.75% - 10.75%
10.00% - 14.00%
10.00% - 11.00%
10.50% - 11.50%
8.50% - 9.50%
10.00% - 11.00%

N/A

I
I

7.50% - 8.50%
7.00% - 7.50%
8.00% - 9.00%
6.50% - 7.50%
9.00% - 9.50%
9.00% - 10.00%
6.25% - 7.00%
8.00% - 8.50%
7.50% - 8.50%
8.00% - 8.75%
8.00% - 9.25%

7.50% - 8.50%
6.50% - 7.00%
6.00% - 8.00%
6.50% - 7.00%
8.50% - 9.00%
9.00% - 10.00%
6.50% - 7.50%
7.50% - 8.00%
7.50% - 8.00%
7.00% - 7.50%
7.50% - 8.50%

8.50% - 9.50%
5.50% - 6.00%
7.00% - 8.00%
4.50% - 5.00%
5.50% - 6.00%
6.50% - 7.00%
6.25% - 7.25%
6.75% - 7.50%
7.25% - 7.75%
6.75% - 7.25%
3.00% - 4.50%
6.50% - 7.50%
5.00% - 5.75%

Albuquerque
Denver
Las Vegas
Los Angeles
Orange County
Phoenix
Portland
Sacramento
Salt Lake City
San Diego
San Francisco
San Jose
Seattle

I
I
I
I
I
I
I
I

7.00% - 7.75%
9.00% - 9.50%
N/A
8.50% - 9.50%
10.00% - 12.00%
9.50% - 10.50%
9.50% - 10.50%
8.00% - 9.00%
9.50% - 10.50%

Trend*

6.50% - 7.50%
5.50% - 6.25%
6.00% - 7.50%
5.00% - 6.50%
8.00% - 8.50%
8.50% - 9.00%
5.50% - 6.25%
6.50% - 7.00%
7.00% - 7.50%
6.50% - 7.00%
6.50% - 7.50%

N/A

I
I
I
I

8.00% - 9.50%
8.50% - 9.50%
N/A
9.00% - 9.75%
9.50% - 12.00%
8.50% - 9.00%
9.25% - 9.75%
7.50% - 8.50%
9.00% - 10.00%

Stabilized
Cap Rates
9.50% - 11.00%
7.00% - 7.50%
8.00% - 8.25%
N/A
9.00% - 9.50%
11.00% - 11.50%
8.50% - 9.25%
7.50% - 8.50%

Atlanta
Austin
Dallas
Houston
Jacksonville
Memphis
Miami
Nashville
Orlando
San Antonio
Tampa

Trend*

Class C
Return on Cost
for Value-Add
9.00% - 10.00%
6.25% - 7.00%
9.00% - 9.25%
6.00%
9.00% - 9.50%
9.25% - 9.75%
8.25% - 8.75%
7.00% - 8.00%

5.75% - 6.25%
7.50% - 8.50%
9.00% - 9.50%
7.50% - 8.50%
9.00% - 10.00%
8.00% - 8.50%
8.25% - 8.75%
6.50% - 7.50%
8.50% - 9.50%

I
I
I
I

Chicago
Cincinnati
Cleveland
Columbus
Detroit
Indianapolis
Kansas City
Minneapolis
St. Louis

Stabilized
Cap Rates
8.50% - 9.25%
5.50% - 6.00%
7.25% - 7.50%
5.50%
8.50% - 9.00%
8.50% - 9.00%
7.75% - 8.50%
5.50% - 6.25%

I
I
I
I
I
I

Baltimore
Boston
Charlotte
New York
Philadelphia
Pittsburgh
Raleigh
Washington, DC

Trend*

Class B
Return on Cost
for Value-Add
7.00% - 7.50%
5.50% - 6.00%
8.00% - 8.25%
5.50%
7.50% - 8.25%
8.25% - 8.75%
7.50% - 8.25%
6.00% - 7.00%

Class A
Stabilized
Cap Rates
6.00% - 6.50%
4.50% - 5.50%
6.50% - 6.75%
4.50%
7.00% - 7.50%
7.50% - 8.00%
6.75% - 7.50%
4.50% - 5.25%

I
I
I

Return on Cost
for Value-Add
12.00% +
7.75% - 8.50%
10.00% - 10.25%
N/A
9.50% - 10.00%
11.00% - 12.00%
8.75% - 9.50%
8.50% - 10.00%
9.50% - 11.50%
11.50% - 12.00%
11.00% - 12.00%
11.00% - 12.00%
12.00% - 15.00%
14.00% +
12.00% +
12.00% - 13.00%
11.00% - 15.00%
9.50% - 11.50%
8.25% - 8.75%
10.00% - 12.00%
10.00%
11.00% - 12.50%
12.00% +
7.50% - 8.50%
10.00% - 10.50%
9.00% - 10.00%
11.00% - 12.00%
9.75% - 10.75%
N/A
9.25% - 9.75%
9.00% - 11.00%
9.00% -10.00%
8.75% - 9.75%
9.50% - 11.00%
8.50% - 10.00%
9.00% - 10.00%
8.00% - 9.00%
9.00% - 9.50%
7.25% - 8.00%
9.00% - 12.00%
8.50% - 10.00%

Copyright 2013 CBRE Information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to
confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of the CBRE Global Chief Economist.

* Compared to 2nd Half 2012