Urbis Think Tank
US commercial real estate market set to improve
By analysing the trends in cap rates since mid 2010, it is becoming apparent that investors are expecting an appreciation in CRE prices.
Of interest, the FRBSF noted that “Most cap rate movements are national in scope. Hence, market participants apparently expect a widespread rebound across most U.S. metropolitan areas. Of course, prices in some areas are more closely tied to the national CRE cycle than prices in other areas, so some variation in price appreciation is expected among cities.”