Cap Rate for Retail Properties 5,000 sf or Larger within Miami-Dade County, Florida in the 0 Years to 2015
The capitalization rate (cap rate) for retail properties in Miami-Dade County that are 5,000 square feet or larger (4,855 properties), as reported by Costar, remained under 6% in the most recent period, as can be seen in the accompanying chart. This represents a significant decline from five years prior, when cap rates for such retail properties were in excess of 8% for a number of quarters. This may indicate investors feel the environment for retail has become more defined, as the waves of changes in retail activity driven largely by e-commerce are viewed as more predictable trends.
Chart courtesy of Costar.