1. BIG BOX TRANSACTION INSIGHTS
July 2019
Dane Anderson MAI, CCIM
Director

2. Real Estate Research Corporation (RERC)
Founded 1931
Value-centric firm

3. Research Sponsor: IPT

4. Overall Big Box Research Project
Methodology overview
Transaction research
Market participant survey
* Research paper is pending release by IPT

5. Key Takeaways Understanding of the methodology utilized
Better insight into the impact of physical, legal, and economic attributes on sale prices
Information to utilize in analyzing properties

6. How We Defined “Big Box”
Freestanding
Greater than 30,000 SF
Year Built 1980+
Single tenant/user property
Retail use
Onsite surface parking (non-CBD locations)

7. Transaction Analysis 740 transactions in big box data set
CoStar, RCA, market participants
Locational, physical, economic, transactional, demographic characteristics
Transactions from 2010 – beginning 2018

8. Developed Primarily Utilizing R

9. Some APIs Utilized Open Street Map API – geo coordinates
Googles Maps API (maps and address standardization)
Census APIs – standardized census location data
Census APIs – demographic data by location data points

10. Transaction Geo-distribution
(All Sales)

11. Transaction Sale Price By State
(All Sales)

12. Transaction Sale Price By State
(Fee Simple Sales)

13. Transaction Sale Price By State
(Leased Fee Sales)

14. Distribution of Sale Price

15. Time Series of Sales

16. Transaction Summary

17. Sales – Buyer Type
(Fee Simple, >50k SF)

18. Sales – Buyer Type
(Leased Fee, >50k SF)

19. Existing Use
Google Street View

20. Purchaser Use
Google Street View

21. Sales Summary – Planned Use
(Fee Simple, >50k SF)

22. Sale Analysis - Building Size Impact
(Fee Simple, All Sizes)

23. Sale Analysis - Building Size Impact
(Leased Fee, All Sizes)

24. Sale Analysis - Market Size Impact
(Fee Simple, >50k SF)

25. Sale Analysis - Market Size Impact
(Leased Fee, >50k SF)

26. Sale Analysis - Year Built Impact
(Fee Simple, >50k SF)

27. Sale Analysis - Year Built Impact
(Leased Fee, >50k SF)

28. Deed Restrictions — Example
“The property shall not be used for or in support of the following: (i) a grocery store or supermarket, a wholesale club, discount department store or other discount store, or a pharmacy…The Property Restrictions shall terminate 15 years from the recording of this deed…”

29. Sale Analysis - Deed Restrictions Impact
(Fee Simple, >50k SF)

30. Sale Analysis - Days on Market Impact
(Fee Simple, >50k SF)

31. Investment Grade vs Non-Investment Grade

32. Credit Rating at Time of Sale

33. Tenant Credit Rating Impact – Sale Analysis
(Leased Fee Sales, >50k SF)
8.76%
7.71%
6.65%

34. Remaining Lease Term Impact – Sales Analysis
(Leased Fee Sales, >50k SF)

35. Questions?