RealtyRates.com is the Trade Name as well as a Trademark of Robt. G. Watts (RGW). Founded in Honolulu, HI and currently headquartered in Bradenton, FL, RGW has been developing property and providing analytical and development management services to investors, developers, lenders, government agencies and property owners nationwide and overseas since 1973.
RealtyRates.com (and its print and BBS predecessors) has been publishing the Investor Survey since 1992, becoming an entirely Web-based operation in March, 2001 (1Q01 Edition). The Developer Survey was launched in March 2002 (1Q02 Edition), and the Market Survey in August, 2002 (3Q02 Edition). PDF versions were launched with the 1Q02 Editions of the Investor and Developer Surveys and the initial 3Q02 Edition of the Market Survey.
As we begin our 21st year on the Web, we now serve more than 5,000 companies, government agencies, universities and individuals in all U. S. states and territorial possessions and more than 15 other countries. The Surveys are utilized as collateral material in more than 60 college and university programs including eight overseas, as well as by several trade and professional organizations including the CCIM Institute and IREM Institute of Real Estate Management. Survey extracts are included in numerous college texts, published articles, monographs and scholarly reports, as well as sotware appplications for portfolio evaluation and stress testing.
The methodology employed by RealtyRates.com is termed data aggregation - a process in which information is gathered and expressed in summary form for purposes of statistical analysis.
The actual process of collection from our third party sources is via online forms subsequently downloaded into Excel, converted to graphics and published to the Internet in HTML and PDF formats. Robt. G. Watts / RealtyRates.com conducts no data anlysis itself, but rather collects, collates and presents the data for you to use in your own analyses. Likewise, we provide very limited commentary and offer virtually no prognostications, although the built-up overall cap rates in the Investor Survey tend to be forward-looking.
The data collected are the data you see in the published Surveys. In other words, we ask that our survey respondents provide us with very specific information relative to transactions and properties with which they are or have been directly involved as a lender, investor, broker, appraiser or property manager.
The preceding not withstanding, in order to insure the integrity of the data, the RealtyRates.com staff regularly audits the information supplied via third party confirmation and personal inspection of selected properties.
The Investor, Developer and Market Surveys individually represent the results of pollings of more than 300 lenders, investors, brokers, appraisers and property managers. Although the sources vary by survey, in all instances lenders, who are often aggregators themselves, provide the bulk of the data. In no instance do we utilize data from press releases, news reports, public records, listing services or feedback from subscribers, nor do we generally seek estimates or opinions, Pro-Forma Rates in the Developer Survey excepted.
Property Types, Quality and Geography
The Investor Survey includes national mortgage terms and interest rates, equity requirements, overall cap and discount rates, reserve requirements, and interim financing rates and terms for 32 income producing property types, plus financial indicators, historical cap rate trend data, and land lease cap and discount rates, likewise by property type.
The Developer Survey includes actual and pro-forma discount rates for 22 sell-out property types including subdivisions, PUDs, business and industrial parks, and residential and commercial condominiums and co-ops. Data is distributed amongst 13 regions encompassing all 50 states as well as Puerto Rico, Guam and the U.S. Virgin Islands.
The Market Survey includes sales, rent, occupancy, and operating expense data, together with inferred overall cap rates and gross rent and effective gross income multipliers for seven core commercial property types including apartments; warehouses and distribution centers; flex/R&D facilities; CBD and suburban offices; and anchored neighborhood and community and unanchored strip retail centers. Data is provided for 12 regions and 45 metro market areas encompassing the entire continental U.S.
In all instances, our survey respondents are asked to provide data on Class A and B properties which we define as:
- Class A Properties: The most prestigious properties that compete for premier users with rents above average for the area. Buildings have high quality standard finishes, state of the art systems, exceptional accessibility and a definite market presence.
- Class B Properties: Properties that compete for a wide range of users with rents in the average range for the area. Building finishes are fair to good for the area and systems are adequate, but the building cannot directly compete with Class A at the same price.
It should be further noted that institutional as it applies to property types is not in our lexicon as we view it as descriptive of the investor, not the property. By the same token, institutional properties are not excluded from the surveys, indeed institutional investors are not only involved with a significant proportion of the properties represented by our surveys, but comprise a significant percentage of our survey respondents as well.
In the Investor Survey, there are no provisions for reserves, therefore, if your analysis includes reserves, our published overall cap and discount rates should be adjusted downward to reflect the additional cost item. Similarly, our published rates are based on market parameters similar to other cap rate publishing services. Tax Assessor's in jurisdictions that expense real estate taxes typically use our published base rates. Tax Assessor's in jurisdictions that do not expense real estate taxes should "load" or add to the published cap rate to properly account for the real estate taxes.
In the Developer Survey, subdivision and PUD discount rates include the developer's profit, i.e., profit is not treated as a line item expense, while condominium and co-op rates do not, i.e., profit is treated as a line item expense.
In the Market Survey, published inferred cap rates are based on market parameters similar to other cap rate publishing services. Tax Assessor's in jurisdictions that expense real estate taxes typically use our published base rates. Tax Assessor's in jurisdictions that do not expense real estate taxes should "load" or add to the published cap rate to properly account for the real estate taxes.
All information and data presented is obtained from or provided by sources believed to be reliable. The preceding not withstanding, Robt. G. Watts / RealtyRates.com provides information and data on this Web site and the RealtyRates.com Investor, Developer and Market Surveys in whatever format "AS-IS" with all faults. Robt. G. Watts / RealtyRates.com make no warranties of any kind (whether express,
implied or statutory) with respect to such information and data. Robt. G. Watts / RealtyRates.com assumes no liability for damages (whether direct or indirect), caused by errors or omissions, or resulting from the use of said information and data or resulting from the application or use
of the product or service described herein. Robt. G. Watts / RealtyRates.com reserve the right to make changes to any information or data contained on the RealtyRates.com Web site and Investor, Developer and Market Surveys without further notice. As with virtually all real estate investment, financial and market data, you are advised to conduct your own independent due diligence.
Unless otherwise indicated, all elements of this Web site are protected by U.S. copyright and are the property of Robt. G. Watts / RealtyRates.com. Copying and/or displaying any element of this Web site is not allowed without prior arrangement. Paid subscribers may insert unaltered survey report tables, charts and graphs bearing the RealtyRates.com and/or Robt. G. Watts / RealtyRates.com copyright notice into appraisals and similar business reports. With suitable attributiuon, the free data appearing on this Web site may be cited in appraisals and other similar business reports.
An ordinary annual subscription represents a single site license. As such, use of the password-protected portions of the RealtyRates.com Web site is restricted to employees of a single office. Use by a firm's other offices requires multiple individual site licenses or a corporate multi-site license.
The RealtyRates.com Web site changes frequently and the actual release date of new editions of the Investor, Developer and Market Surveys varies somewhat from quarter to quarter. As a matter of efficiency, a quarterly, ad-free newsletter, the RealtyRates XTRA, is e-mailed to all subscribers, purchasers of individual quarterly copies, and other interested parties who request it as a means of keeping everyone informed. All subscribers and purchasers of individual quarterly copies automatically receive the newsletter but may opt out at any time. Others may receive the newsletter by sending an e-mail to that effect to News@RealtyRates.com. Opt out instructions are included with each newsletter and all requests are immediately honored.