PwC real estate investor survey.

General capitalization price utilized in computation of residual rate; usually applied to the NO! in the year complying with the projection. All legal rights booked.





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. No portion of this short article could be replicated without the reveal written consent from Dean Dean Graziosi Graziosi the copyright owner. . Copyright 2015 Wind, Cengage Understanding. PwC REAL ESTATE INVESTOR SURVEY 4th Quarter 2014 REGIONAL SHOPPING CENTER CBD OFFICE 4Q 2014 3Q 2014 4Q 2014 3Q 2014 Discount rate Price (IRR)(a) Range 5.50 % - 5.50 % - 5.50 % -5.50 % - 11.00 % 12.00 % 11.00 % 11.00 % Ordinary 8.15 % 8.63 % 7.45 % 7.54 % Modification (b.p.) -48 -9 Total Cap Price (OAR)( a ) Range 4.00 % -4.00 % -3.75 % -3.75 % - 10.00 % 10.00 % 8.00 % 8.00 % Typical 6.21 % 6.58 % 6.16 % 6.16 % Change (b.p.) -37 0 - Residual Cap Price 4.75 % -4.50 % -5.00 %-5.00 % - 10.00 % 11.00 % 9.00 % 9.00 % Typical 6.79 % 6.94 % 6.59 % 6.64 % Adjustment( b.p. )-15 -5 STOREHOUSE APARTMENT 4Q 2014 3Q 2014 4Q 2014 3Q 2014 Discount rate Price (IRR)( a) Variety 5.75 % -5.75 % -5.50 % -6.00 % - 9.00 % 9.00 % 10.00 % 12.00 % Typical 7.17 % 7.31 % 7.34 % 7.92 % Modification (b.p. )-14 -58 Total Cap Price(OAR )(a) Range 4.50 % -5.00 % -3.50 %- 3.50 %- 7.00 % 7.00 % 8.00 % 9.00 % Typical 5.82 % 5.93 % 5.36 % 5.51 % Adjustment (b.p. ) -11 -15 Residual Cap Price 5.50 %-5.50 %-4.25 %- 4.25 % - 8.00 % 8.50 % 9.00 % 9.00 % Typical 6.49 % 6.60 % 6.03 % 5.97 % Change(b.p.)-11 + 6 (a.)Rate on unleveraged, all-cash purchases Definitions: b.p. Inner price of return in an all-cash deal, based upon yearly year-end compounding Overall Cap Rate (OAR). Resource: PwC Property investor Survey, formerly understood as the Korpacz Investor Study Personal study performed by PwC throughout October 2014. Preliminary rate of return in an all-cash transaction Residual Cap Rate. basis factors Discount rate Rate (IRR).