On a scale of one to 10, with 10 being excellent, Austin's investment conditions for all types of properties were rated 5.4. Anticipated growth in rents got a two and anticipated values over the next year got a 4.1.
Warehouse and power centers received eight ratings and neighborhood centers were rated seven. Rent and value growth for warehouse space were six and five; for power centers, three and seven; and neighborhood centers, three and four. Hotels received the lowest rating of one across the board for investment conditions, rent and value.
In most categories, pre-tax yields were higher in Austin than the south region and the US. The "going-in" cap rates were slightly higher than those of the regional and national markets. The terminal cap rates, which estimate resale value at the end of the holding period, were slightly lower or even with the regional and national figures.
No categories were rated above average for overbuilding and oversupply, but suburban office and hotels were rates just above average for risk of oversupply.
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