But what about Atlanta? How does it compare to the nation at large?

“Multifamily properties have the lowest overall cap rates of any major sector at 5.26% for stabilized infill and 5.67% for stabilized suburban assets,” Dan Wagner, Southeast research manager for CBRE, tells GlobeSt.com. “Atlanta has lower than average cap rates for office in the urban core and slightly higher than average for suburban office assets.”

Nationally, cap rates edged upward for the office sector, albeit modestly and to a greater extent for suburban properties than those in the CBD. Cap rates for properties located in markets whose economies are heavily dependent on the energy sector had a greater tendency to rise.

Retail cap rates rose modestly, with the most notable increases among class B neighborhood and community centers, signaling investor concern about non-prime assets, particularly those vulnerable to rising competition among grocers in already crowded markets.

Finally, industrial cap rates were essentially unchanged, signaling the strength in this property sector. And the upward shift of hotel cap rates that began in the first half 2015 continued through the first half of 2016, with rates rising across most hotel categories.

“Retail [in Atlanta] is on par with the national average,” says Wagner. “Atlanta's industrial market provides below average cap rates, and class A industrial is expected to decrease further. We are expecting a decreased cap rate for multifamily in Atlanta.”

Steady gains in the US economy have resulted in net positives for the multifamily sector—will this wave continue for the foreseeable future? What's driving development and capital flows? Join us at RealShare Apartments on October 19 & 20 for impactful information from the leaders in the National multifamily space. Learn more.

ATLANTA—Lifestyle changes from Millennials, Baby Boomers and a favorable financing environment contributed to resilient multifamily capitalization rates in the US over the first half of 2016. That's according to CBRE's latest research from global property advisor CBRE Group, Inc.

Despite a slowdown in investment activity, cap rates for US commercial real estate were stable across most asset types during the first half 2016. Multifamily properties, along with industrial, held its pricing during this period as cap rates widened, albeit slightly, in other sectors.

Minimal or no change is anticipated across property types over the remainder of the year for more than 60% of markets. In those markets where change is anticipated, cap rates are more likely to increase rather than decrease, but any changes will be small.

“There are significant demographic and lifestyle changes from Millennials and Baby Boomers that have a long-way to run relative to increasing demand for apartments,” says Chris Akins, senior managing director of Multifamily and Capital Markets at CBRE. “This combined with favorable and plentiful financing available from Fannie Mae and Freddie Mac is making multifamily an attractive long-term prospect as reflected in the cap rates. Foreign capital is also becoming more comfortable with the asset class. We have not seen significant over-supply, although we are starting to see moderated rent growth as a result of new supply in some markets.”

But what about Atlanta? How does it compare to the nation at large?

“Multifamily properties have the lowest overall cap rates of any major sector at 5.26% for stabilized infill and 5.67% for stabilized suburban assets,” Dan Wagner, Southeast research manager for CBRE, tells GlobeSt.com. “Atlanta has lower than average cap rates for office in the urban core and slightly higher than average for suburban office assets.”

Nationally, cap rates edged upward for the office sector, albeit modestly and to a greater extent for suburban properties than those in the CBD. Cap rates for properties located in markets whose economies are heavily dependent on the energy sector had a greater tendency to rise.

Retail cap rates rose modestly, with the most notable increases among class B neighborhood and community centers, signaling investor concern about non-prime assets, particularly those vulnerable to rising competition among grocers in already crowded markets.

Finally, industrial cap rates were essentially unchanged, signaling the strength in this property sector. And the upward shift of hotel cap rates that began in the first half 2015 continued through the first half of 2016, with rates rising across most hotel categories.

“Retail [in Atlanta] is on par with the national average,” says Wagner. “Atlanta's industrial market provides below average cap rates, and class A industrial is expected to decrease further. We are expecting a decreased cap rate for multifamily in Atlanta.”

Steady gains in the US economy have resulted in net positives for the multifamily sector—will this wave continue for the foreseeable future? What's driving development and capital flows? Join us at RealShare Apartments on October 19 & 20 for impactful information from the leaders in the National multifamily space. Learn more.