CBRE's H2 2024 Cap Rate Survey paints a picture of a commercial real estate market that is gradually finding its footing after a period of significant disruption. While challenges persist, particularly in the office sector, the overall trend is towards stabilization and the improved investor sentiment.
After a tumultuous period marked by a 51% decline in annual sales volume in 2023, the market has begun to rebound, with a 9% increase in 2024.
The survey, conducted between November and December 2024, captures 3,600 cap rate estimates, providing a snapshot of investor sentiment and market conditions. Despite the volatile nature of Treasury yields throughout 2024, cap rates have mainly remained steady during the second half of the year. This stability comes as a relief to many in the industry, signaling an end to the repricing phase for most sectors.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
