IRVINE, CA—Over time, cap rates historically track interest rates, and for now, interest rates remain within 1% of record lows, so pricing for Orange County retail assets could remain strong through next year, CBRE EVP Phil Voorhees tells GlobeSt.com. According to a recent report from the firm, the Orange County capital-markets environment remains strong overall, but is less dynamic than the cyclical high reached in 2015. Multifamily was the only sector in Orange County that recorded tightening cap rates, while the industrial sector remained unchanged and retail and hotel cap rates pushed upwards.
We spoke with Voorhees about the trends in retail cap rates in this market and where he expects them to go in 2018.
GlobeSt.com: How would you characterize Orange County's current retail cap rates?
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
