Cap Rates in a Rising Interest Rate Environment

Great overview of the recent impact on cap rates in commercial real estate from rising rates. In short, there has been no impact at all and cap rates continue to move lower in most sectors of the CRE world. From the article: It is still early in the cycle of interest rate increases, and we expect more to come, both from policy actions by the Federal Reserve to raise its target for short-term interest rates and also the market-driven increases in long-term interest rates. There has been enough of a rise in both short-term and long-term rates in recent months, however, to assess where we stand. Yields on the 10-year Treasury note are 70 bps or more above where they were six months ago, and nea

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    Prudent Growth Partners, LLC  (2017)    1829 E. Franklin St, Suite 800-F, Chapel Hill, NC 27514  (919) 590-4119