Real Estate Market Update: Cap Rates Estimates Continue to Fall
The majority of participants in CBRE’s semi-annual cap rate survey believe cap rates have peaked.
As shown below, the share of respondents who believe cap rates will increase during the next six months fell dramatically compared to the previous two surveys (which are conducted at 6-month increments). This improved sentiment is likely driven by the recent sharp decline in Treasury yields.
We believe this is more evidence that private commercial real estate values have likely bottomed, and now is a potential once-in-a-decade opportunity to increase exposure to the asset class.
For RIAs eager to delve into the realm of real assets, especially commercial real estate, we invite you to reach out to us today.