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California  + Retail  | 
Dealmaking activity abounded at the NMHC Annual Meeting in Orlando

Where Can Value-Add Deals Still Be Found?

Investment opportunities that allow CRE investors to achieve required rates of return are increasingly tough to uncover, as a result of record-low cap rates in the U.S. That, in turn, is pushing some farther up the risk spectrum into the value-add space.

Value-add plays in the apartment market are becoming scarce, though research by Real Capital Analytics (RCA) suggests opportunities still exist among other property types such as industrial and certain office and retail properties. Apartment spreads in the six major metros and non-major metros compressed below their long-term averages, though better returns can be found in the non-major markets.

RCA found that industrial properties in both major and non-major locales ebbed above the long-term line, thus still provide value-add opportunities. Industrial is the only property type posting increases in deal activity for H1 2017. As the industrial market becomes more saturated, price spreads are likely to narrow, predicts RCA’s Elizabeth Szep.

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For comments, questions or concerns, please contact Dennis Kaiser


Inside The Story

Read more at RCAConnect With RCA’s Szep

About Dennis Kaiser

Dennis Kaiser is Vice President of Content and Public Relations for Connect Commercial Real Estate. Dennis is a communications leader with more than 30 years of experience including as a journalist and in corporate and agency marketing communications roles. He is responsible for Connect’s client content operations and is involved in a range of initiatives ranging from content strategy, message development, copywriting, media relations, social media and content marketing services. In his most recent corporate communications roles, he led a regional public relations effort across Southern California for CBRE, played a key marketing role on JLL’s national retail team, and was responsible for directing the global public relations effort at ValleyCrest, the nation’s largest commercial landscape services company. In addition to his vast commercial real estate experience, Dennis has worked on communications and launch strategies for a number of residential projects such as Disney’s Celebration in Florida, Ritter Ranch in Palmdale California (7,200 homes, 22,000 acres), WaterColor in Florida and PremierGarage in Phoenix. Dennis’s agency background included firms such as Idea Hall and Macy + Associates. He has earned an outstanding reputation with organization leaders as a trusted advisor, strategic program implementer, consensus builder and exceptional collaborator. Dennis has developed and managed national communications programs for Fortune 500 companies to start-ups, both public and private. He’s successfully worked with journalists across the globe representing clients involved in major-breaking news stories, product launches, media tours, and company news announcements. Dennis has been involved in a host of charitable and community organizations including the American Cancer Society, Easter Seals, BoyScouts, Chrysalis Foundation, Freedom For Life, HOLA, L.A.’s BEST, Reach Out and Read, Super Bowl Host Committee, and Thunderbirds Charities.

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