At the May meeting of the Dallas Multi-Discipline Group, attendees engaged in a lively discussion about extraordinarily low cap rates, as low as sub-4 in California and 3.75 on a McDonald’s restaurant in the DFW area. Mike Fritz, senior director at property tax consulting firm Altus Group, noted that cap rates for industrial are 5.5 to 6 on good-quality assets, but he’s using 7.5 in Dallas. The Dallas appraisal district is not afraid to use a 4.5 or 5 on an apartment complex, Fritz noted. “From an appraiser’s perspective, I need a sign that cap rates are going to increase.”

Pictured above (left to right): David Helms, Worth Williams and Mike Fritz