What’s Behind the Surge in Industrial Cap Rates?

By Xander Snyder on February 23, 2024
Though the industrial market is softening compared to the pandemic days of double-digit rent growth and record-low vacancy, it is far from weak. Despite slowing rent growth and modestly rising vacancies, demand to lease industrial space remains strong, driven by long-term trends such as rising eCommerce sales, retailers’ need for modern logistics ... Read More

Commercial Real Estate industrial real estate Potential Cap Rate Model

Pandemic Aftershocks Drive Industrial Cap Rates Higher

By Xander Snyder on October 19, 2023
The state of today’s industrial commercial real estate (CRE) can largely be explained as the result of pandemic-related aftershocks. During the pandemic, e-commerce sales soared as millions of stuck-at-home consumers turned to online retailers to purchase goods. Meanwhile, COVID-19 disrupted global supply chains, which made it more difficult for ... Read More

Commercial Real Estate Potential Cap Rate Model

What Happens to Cap Rates if…

By Xander Snyder on August 7, 2023
Multifamily capitalization (cap) rates have now increased for three consecutive quarters, the first time since the Great Financial Crisis. This is a sign that investors are requiring higher yields today in order to purchase a property. Read More

Commercial Real Estate Potential Cap Rate Model

Uncertain Economic Outlook Keeps Renters Where They Are, Pushing Cap Rates Up

By Xander Snyder on May 23, 2023
In times of economic uncertainty, people tend to stay put. After all, why take on new financial obligations, like an apartment lease, when the future is less certain? Today, though unemployment remains low, inflation remains high, and the recent slew of layoffs at tech companies has many worried about their own financial position. The recent, ... Read More

Commercial Real Estate Potential Cap Rate Model Multifamily

What Do Fewer Multifamily Transactions and Greater Pricing Uncertainty Mean for Cap Rates?

By Xander Snyder on January 27, 2023
Slowing demand to lease apartments is now reducing demand to own multifamily properties. Declining rent growth, as well as higher interest rates, has limited the prices that prospective buyers can afford to pay for a property, opening a gap in price expectations between buyers and sellers. As a result, multifamily transaction volumes in the fourth ... Read More

Commercial Real Estate Interest Rates Potential Cap Rate Model

Will Slower Apartment Leasing Activity Lead to Rising Multifamily Cap Rates?

By Xander Snyder on October 19, 2022
Surging mortgage rates have suppressed demand for home purchases by reducing affordability, which has prevented many renters from transitioning to homeownership. As a result, rental demand has remained strong and real estate investor interest in multifamily properties has remained high. Multifamily transaction volume broke records in 2021, and ... Read More

Commercial Real Estate Interest Rates Potential Cap Rate Model

How Will Rising Interest Rates Impact Cap Rates?

By Xander Snyder on June 30, 2022
When inflation first began to surge in 2021, many believed it would be transitory. Inflation has remained stubbornly high, however, prompting the Federal Reserve to tighten monetary policy. In response, the yield on the 10-Year Treasury note has more than doubled, from 1.5 percent at the end of last year to nearly 3.5 percent in mid-June. The ... Read More

Commercial Real Estate Interest Rates Potential Cap Rate Model

Commercial Real Estate Prices Still Have Room to Run

By Xander Snyder on April 14, 2022
In the initial stages of the pandemic, some sectors of the commercial real estate market suffered. As people shifted to working from home – avoiding travel, visiting retail stores, and dining in restaurants – prices for hotels, retail properties, office buildings and other property types where people traditionally gathered declined. However, as ... Read More

Commercial Real Estate Interest Rates Potential Cap Rate Model

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