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A CBRE report showed average cap rates rose to their highest in nearly 10 years, Seattle’s mayor is focusing on expanding housing options, and a UK-based recruiting firm showed salaries were relatively flat in CRE. All eyes are on CPI tomorrow with economists expecting inflation to pick up, Japan is not longer in recession after revised numbers are released, Reddit looking to IPO, and Bitcoin hits another record high

The salary survey submission form is live!!! We’ll be collecting info all week and post results via PropMemo and Real Assetzz in the following weeks

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Capital Markets

Market News

• Inflation Expected To Come In Hot For February

  The CPI is due for release on Tuesday at 8:30am ET, economists expect monthly growth for February to be above January growth and for annual growth to remain at 3.1%. Economists expect the uptick in prices will be driven by gas prices

• Japan No Longer In Recession After Data Revision

  Japan’s economy expanded at an annualized rate of 0.4% in Q4, better than the initial estimate for a 0.4% contraction. The revised GDP number was released by the Cabinet Office and meant it Japan is not in a recession. The upward revision came amid growing market expectations that the Bank of Japan could ditch negative interest rates as early as March

• Reddit’s Targets $6.4B IPO

  Reddit is targeting a sale of about 22M shares, priced between $31 and $34 each, to raise up to $748M.The valuation is well below the $10B target it had in 2021, when it was fundraising. In the company’s filings it touts having 73M daily active users as of Q4 2023. Reddit has never turned a profit and its filings mention its in the early stages of monetizing its business

• Bitcoin Soars Past $72K

  On Monday, the UK’s Financial Conduct Authority said it wouldn’t object to requests from recognized investment exchanges to create crypto-backed exchange traded notes, or ETNs. This comes after the US’s SEC recently greenlit bitcoin ETFs. Bitcoin’s price surged beyond $72K following the news

CRE Headlines

• Seattle Mayor Proposes Plan To Increase Housing Density

  The Seattle Mayor proposed a plan that would allow all types of new housing to increase density to accommodate the city’s growth. The plan aims to increase affordability, account for climate change and increase in disasters, and

• Average Cap Rate Rises To 7% in 2023

  CBRE’s H2 2023 cap rate survey showed cap rates across all assets classes rose to their highest in roughly 10 years, ending the year with an average of 7%. Respondents to the survey believe rates have peaked with many believing rates will not rise in 2024. Office cap rates expanded by the most, while neighborhood retail was the most stable

  Percent of Survey Responders Expecting Cap Rate Increases in 2024

  

• Pay Was Flat in CRE

  A recent report from Macdonald & Co.’s showed the average global salary in CRE was $76,390. The median salary in the US dropped from $150K to $145K in 2023. For those in the U.S. getting a raise, the average was $13K. CRE professionals in healthcare real estate were paid the most, but those in the industrial and logistics sectors got the biggest bonuses. The survey found the best way to earn more money was to jump companies, with a promotion granting workers a lower pay raise than at a new company

Deals Deals Deals

Sales

• Retail: Broder & Sachse Real Estate acquired Downers Park Plaza, a 124K sf shopping center in suburban Chicago, IL from PMAT. The property last traded for $25M in 2018

• Retail: 2PICW LLC acquired Willow Oak Plaza, a 163K sf shopping center in Waynesboro, VA from Big V Property Group

• Industrial: MDC Realty Advisors acquired a 115K sf industrial asset $24M in Phoenix, AZ. American Refrigerator Supplies Inc. sold the property and signed a leaseback agreement

• Multifamily: Graceada Partners purchased Vantage Point, a 144-unit multifamily community in Log Angeles, CA for $17M

• Industrial: Midtown National Group acquired a 102K sf industrial net-leased asset in Denver, CO for $14M

• Office: FoxRock Properties acquired 1200 Crown Colony Drive, a 236K sf office asset outside Boston, MA, for $6M from Bridge Investment Group. The seller bought the property in 2018 for $43M

Debt

• Medical Office: A private company secured a $28M loan to refinance Torrance Memorial Lundquist-Lurie Cardiovascular Center, a 65K sf medical office building at 2841 Lomita Blvd in Los Angeles, CA. The 10-year permanent loan was provided by an insurance company

• Multifamily: Redburn Development Partners secure a $25M financing package from KeyBank Real Estate Capital for two multifamily assets in Albany, NY

Developments

• Multifamily: RISE Development breaks ground on a 8,500-bed student housing project for the University of Tennessee in Knoxville, TN. The development’s first phase is slated for completion in August 2025

• Multifamily: Southwest Value Partners and StreetLights Residential are developing The Everett and The Emory. two apartment towers totaling 650 Units in Nashville, TN. The towers are expected to be completed in November

• Multifamily: Macallan Group, McNeal Development and Batson-Cook Development Co. began construction on a 97 BTR townhouse community in Atlanta, GA with the first units expected to deliver in Q2 2025

• Office: Uline, a packaging materials company, is expanding its HQ in Pleasant Prairie, WI with its third office building brining its HQ to 325K sf

Meme Summary

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