• Average U.S. retail cap rates were down again in the first quarter to 7.97 percent. Further, CBRE revised the fourth quarter 2010 figure up from 7.90 percent to 8.12 percent due to new data. The data is from the CBRE Valuation & Advisory Services (VAS) database from 2003 through the end of the first quarter.
  • Reversing the trend from last quarter, the East and Midwest (not the South and West) had the largest cap rate declines at 25 basis points and 24 basis points from the fourth quarter of 2010 to the first quarter of 2011. The South stayed about the same, while the West declined by about 19 basis points. Average rates have declined to fourth quarter 2008 levels. This is an overall decline of 103 basis points from the fourth quarter 2009 peak, which was 9.01 percent.

Source: CBRE