Cap Rates Under Pressure Amid 10-Year Treasury’s Climb

When the cost of debt is so high, the return becomes lower than what the 10-year actually pays. The 10-year US Treasury is currently at a level not seen since June 2007 – 4.79% after the Oct. 6 trading day and it was at 4.66% after trading on Oct. 10. Commercial real estate professionals – [...]

By |2023-10-17T23:15:35+00:00October 17th, 2023|.|Comments Off on Cap Rates Under Pressure Amid 10-Year Treasury’s Climb

Cap Rates Might Finally Start to Rise Again

Slowing asset growth would be the key according to First American Financial Corporation According to a First American Financial Corporation analysis, cap rates might finally start to recover some of their value. The firm’s potential capitalization rate (PCR) model for the first quarter of 2022 “estimates capitalization rates based on the historical relationship between [...]

By |2022-07-12T14:49:08+00:00July 6th, 2022|.|Comments Off on Cap Rates Might Finally Start to Rise Again
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