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›
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