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CBRE: Cap Rates Have Largely Stabilized
U.S. cap rates have largely stabilized despite volatility in Treasury yields and mixed economic signals, according to CBRE’s just-released U.S. Cap Rate Survey for the second half of 2024. Most of the 200-plus CBRE experts surveyed believe cap rates have peaked.
Based on 3,600 cap rate estimates, the survey found variability among property sectors. Industrial and multifamily experienced cap rate declines, while the office sector saw yield increases due to continued financial distress.
“Cap rates appear to have peaked, and investment volume is expected to rise in 2025, though market volatility persists due to policy uncertainties and fluctuating inflation,” said Tom Edwards, global president of valuation & advisory services for CBRE. “While repricing has largely concluded, cap rate performance will continue to vary by sector.”
CBRE said the report also shows a 9% increase in sales volume for 2024 and projects further growth in 2025 as market repricing concludes.
- ◦Sale/Acquisition
