Cap rates are facing significant downward pressure for many types of commercial real estate from apartments to self-storage facilities to hotels and industrial properties, says Marcus & Millichap SVP and director of Research Services John Chang in the latest installment of his video briefings.
Speaking to apartments, Chang says part of the buzz of large investors at the recent National Multifamily Housing Council strategy conference was that cap rates for larger properties 100 units and up have been pushed down to the 5% range in smaller markets.
He asserts there is tremendous market liquidity and pricing structure is particularly strong with prices surges fueled by big market activity and low interest rates.
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