Here at OpenComps we hope that everyone had good holidays. Before we plunge into a hopefully busy 2013, we wanted to take a general look at what happened in OpenComps’ dataset in 2012 as of today January 2, 2013:
Hotel
Yes, here at OpenComps we have hotels near and dear to our hearts and therefore we feel we have a very good grasp on the hotel investment scene and what occurred in 2012. But even we were surprised at some of the underlying trends that we uncovered.
In 2012, globally, we tracked 415 transactions that covered 88,734 rooms. Of these, we had 301 transaction with pricing information which totalled $15.1 billion in recorded sales, for an average sale price per transaction of $50.1 million and average price per room of $246,209. We also had 94 transactions with recorded capitalization rate information which gave us an average cap rate of 6.91% for 2012.
In the United States, in 2012, we tracked 377 transactions that covered 77,705 rooms. 274 transactions had pricing information for a total of $12.4 billion in recoded sales with an average sale price per transaction of $45.1 million and average price per room of $235,012. All cap rate transactions mentioned above were recorded in the United States, so the 6.91% cap rate for 2012 remains for the United States.
Interestingly, while we initially fully expected that 2012 was much busier transaction year than 2011, it turns out that this wasn’t the case from OpenComps’ database perspective. In 2011, globally, we tracked 537 transactions for a total of 127,100 rooms, gross recoded sales of $24 billion from 459 transactions with pricing info for an average transaction size of $52.2 million and average price per key of $226,821. In the United States, in 2011, we tracked 457 transactions with a total 110,291 rooms, gross recoded sales of $19.7 billion from 413 transactions with pricing info for an average transaction size of $47.6 million and average price per key of $207,793. We have 66 transactions with cap rate information for an average cap rate of 6.84% for 2011.
Thus, it turns out 2012 was down 23% globally (down 18% in the U.S.) in number of recoded transactions and 37% down in gross recorded sales volume. Interestingly, the average price per key is up 9% globally (13% up in the U.S.)
We will give the recoded data on hotel transactions a much more detailed view in a separate post very soon.
We are first to admit that we don’t do as good a job in office, retail and residential tracking as we do in hotels. We hope to rectify this in 2013. We still focus on big, high-profile deals that hopefully give you a good yardstick on where deals are getting done. Finally, most of our focus in the areas below is on New York, so even the small data can give you some insight into the deals in the biggest real estate market in the U.S. Of course, we have a few choice national deals to keep a national perspective.
Office
In 2012, in the United States, we recoded 46 transactions for a total of 17,725,505 square feet. Of these, 35 transactions had pricing information for a gross recoded sales of $5.4 billion with an average transaction size of $155 million and average price per square foot of $387. Six (6) transactions were recorded with a capitalization rate for an average cap rate of 4.53% for 2012.
(For reference, in the United States, in 2011, we recorded 46 transactions for a total of 29,063,404 square feet. 41 transactions with pricing information accumulated a gross recorded sales of $14.5 billion with an average transaction size of $354 million and average price per square foot of $526. One single transaction provided average cap rate of 5.85% for 2011.)
Retail
In 2012, in the United States, we recoded 13 transactions for a total of 5,682,003 square feet. There are 11 transactions with pricing information for a total sales volume of $2.6 billion, average transaction size of $232 million and average price per square foot of $536. We don’t have any recoded transactions with capitalization rate information.
Residential
In 2012, in the United States, we recoded 35 transactions with a total of 6,295 units. There are 33 transactions with pricing information for a total sales volume of $2.6 billion, average transaction size of $79 million and average price per unit of $460,977. Two transactions provide capitalization information for an average cap rate of 4.3% for 2012.
(For reference, in the United States, in 2011, we recorded 20 transactions with a total of 5,787 units. All 20 transactions had pricing information for a total sales volume of $3.1 billion, average transaction size of $155 million and average price per unit of $537,144. Two transactions provide an average cap rate of 4.4% for 2011.)
But…
Please keep in mind that the dataset of OpenComps is ever evolving. The above statistics were the state of the dataset for the referenced years as of January 2, 2013. We continually receive updates for existing transactions, keep inputting historical data and, in general, prune and collect information on transactions. Indeed, we have an active backlog of unrecorded 2012 transactions – really only for office, retail and residential, as we’ve managed to keep on top of pretty much all hotel transactions that we’ve come across – so the above stats will, of course, change.
If you are a paid subscriber to OpenComps, you can perform a variety of advanced searches and browsing filters to arrive yourself at the above information but in its most current form. We hope in 2013 we can bring our subscribers a more visual and immediate way to better understand the trends that are occurring in OpenComps’ dataset. We hope you enjoy your subscription and if you haven’t sign up yet, we hope you’ll join very soon. Much success to all of you in 2013!