Cap rates are one of the daily metric companions in commercial real estate. To the pleasure of buyers and distress of sellers, they've moved steadily higher over the last couple of years as property values drop and forward rate growth is stifled.
That may be coming to an end, suggests CBRE. The firm used multiple cap rate estimation techniques for comparison. While cap rates in general seemed to be heading toward an apex, office and multifamily both looked as though there were more room for expansion.
The four estimation techniques that CBRE used were as follows:
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