Orlando Cap Rate

[Nicholas Candaffio]

Hi Everyone,

I was wondering what cap rates Brokers/Investors are seeing right now for shopping plazas in the Orlando area? Specifically, grocery anchored in A-B+ neighborhoods if available.

Thanks!

[Joel Owens]

Usually over 10 million in price and grocery anchored quality like a Publix a 6 to 7 cap tops.

If some of the less desirable grocers then cap rate can be higher.

Florida is very high demand for retail.

2013 is miles away from what the retail center cycle was then to what it is today.

I look at tons of properties every week nationally in the retail space for clients. Big thing is if an investor wants some unrealistic cap rate then they shouldn't even start searching.

Lot's of people out there with money but unrealistic as to market conditions so they hope things change their way by waiting but cap rates stay the same or keep compressing. Demand dictates price and cap for an area product type.