How are surveyed OARs derived?
Surveyed OAR’s are calculated by dividing actual NOI at the time of sale by the actual sale price. Do NOI’s include reserves? No. However, we do survey lender-specified reserves by property type and this information is included in the Investor Survey. How are equity dividend rates derived? Surveyed returns to equity represent current required target rates reported by investors. This information is included in the Investor Survey. How are surveyed discount rates derived? Investor Survey discount rates are actual internal rates of return reported by investors and property owners on consummated transactions and re-capitalizations; new construction are proforma rates. Developer Survey discount rates are presented in two forms, actual (historical) and proforma (forward-looking). What relevance do national rates have to local markets?. National rates devolve from many local markets thus, there is a clear relationship and, while national rates do not mirror any given local market, they encomp