Cap rates for prime multifamily assets stabilized last quarter amid signs of a slight improvement in recent growth, according to a recent analysis by CBRE.

"After increasing between 20 and 40 basis points in each of the past three quarters, the average prime multifamily going-in cap rate increased by only 1 basis point in Q2 to 4.73%. Exit cap rates fell by 5 basis points. Underwriting expectations for annual asking rent growth over the next three years remain unchanged in Q2 at 2.9%," the analysis found. "The spread between going-in and exit cap rates is a slim 21 basis points and appears to be stabilizing."

Underwriting assumptions are for the highest quality assets in the best location in 15 markets throughout the nation.