Report: Cap Rates to Stabilize In Second Half of 2015
Cap rates on Class-A multifamily and ofice product in primary markets continue to drop, accelerating considerably over the past year. And with levels in the mid-4% and even sub-3% range, only flex industrial product’s cap rate compression has eased, according to Integra Realty Resources (here's executive director Charles Bissell and senior managing director Mark Lamb). In spite of the low yields, cap rates should come back around in the latter half of 2015, GlobeSt reports. Integra predicts a positive value appreciation across all property sectors nationally, especially for suburban multifamily, Class-A industrial and full-service lodging. Still, the report warns investors seeking high yields not to get caught off guard by “stagnant or marginal cap rate compressions." [GS]
