Cap rate trends are on the rise, indicating shifting dynamics in the underwriting landscape. This is the conclusion of a CRED iQ analysis of key metrics for new CMBS conduit lending in Q4 2024 compared to Q3 2024 performance. This analysis encompassed 819 properties across 284 loans, resulting in over $7 billion in loan originations for securitizations.
The increase in cap rates is notable across various property types. Office cap rates ranged from 4.60% to 10.50%, with an average of 7.40%, up from 7.16% in Q3 2024. Multifamily cap rates fell between 3.90% and 7.60%, averaging 5.90%, a slight increase from the previous quarter's average of 5.77%.
Recommended For You
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- 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
*May exclude premium content© 2025 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.
