There have been fewer sales in 2008 and 2009 than seen in previous years. The reduced number of sales is due in some degree to the lack of credit available and the particular aversion to risk on behalf of lenders as well as investors in the current market. The uncertainty surrounding the ultimate fallout from [...]

Accurate valuation is enhanced by solid operating history. However, it is common to rely upon expense comparable data when valuing properties through direct capitalization. Understanding how operating expenses vary from region-to-region is key, especially for specialized lenders and investors looking to expand into other national markets. The table to the right is a sampling of [...]

Now that the effects of the credit crisis have become more fully evident while continuing to grip our economy, 2009 has revealed a repositioning within the real estate markets. Commercial real estate values are returning to the core fundamentals that always drove the market prior to the rise of Commercial Mortgage Backed Securities (CMBS). [...]

On April 25, 2009 we posted an article entitled Cap Rates on the Rise for Walgreens. Five months later, it appears that capitalization rates have stabilized for this asset class. The following is a discussion of the tenant, investment demand and evidence for prevailing Walgreens cap rates.

The Tenant – Walgreens is a national, retail drugstore chain that sells prescription and non-prescription drugs and general merchandise. The company was founded in 1901, and as of August 2009, operated 6,996 drug stores located in 49 states and Puerto Rico. The company is publicly traded on the NASDAQ National Market, the New York Stock Exchange, and the Chicago Stock Exchange under the symbol WAG, and is included in the Standard and Poor’s 500 Index and the NASDAQ 100 Index. Moody’s rates Walgreens long-term debt A2 and short-term debt Prime-1. Standard & Poor’s rates Walgreens long-term debt A+ and short-term debt A-1. The outlook from both agencies is stable.

Have you ever had questions about real estate, but did not know who in the industry to ask? We now have a solution for you. Yesterday, we released a Q & A forum for all of your real estate questions, Real Estate Q & A . Please visit the site and ask all of those [...]