LOS ANGELES-Industry observers, for the most part, don’t see multifamily cap rate increasing. Most expect them to stay where they are or keep dropping, according to a recent Jones Lang LaSalle/RealShare Apartments Outlook 2012 Survey.
Most respondents, at 39%, said cap rates will stay put next year. About 21% say cap rates will drop by 50 basis points, and another 15% predict a basis-point drop of more than 50. Only 15% expect cap rates to rise.
“I think cap rates are going to stay the same in 2012, for two reasons: one is the economy -- it’s going to basically stay the same next year and interest rates are the lowest we’ve ever seen and I just don’t see that changing soon, “ said Paul Belden, president and principal, WLA Investments.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
