Industrial cap rates varied by 140 basis points across US regions in July 2009, according to data published by Real Capital Analytics (RCA).
The highest industrial capitalization rates were registered in the Midwest, where they averaged 8.8%. The second highest industrial capitalization rates were registered in the Northeast, where they averaged 8.3%.
The lowest industrial capitalization rates, averaging 7.4%, were recorded in the Southeast, followed by the Southwest, where industrial capitalization rates averaged 7.7% in July 2009.
Industrial capitalization rates in the West averaged 7.9%, while no data reported for the Mid-Atlantic region.
In terms of industrial property pricing, the West and Northeast registered the highest prices averaging $97 and $81 per square foot, respectively, according to the data reported by RCA for July 2009.
The lowest industrial property prices are reported for the Southeast, where they averaged $40 per square foot, followed by the Southwest where prices averaged $50 per square foot.
Industrial property prices averaged $64 per square foot in both the Mid-Atlantic and Midwest.
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Return from Industrial Cap Rates in July 2009 to Market Watch
