If you’re an investor counting on the traditional action and reaction of cap rates, capital flows and interest rates to land on the sweet spot of cap rate compression, Spencer Levy wants you to know that the world has changed.
“The focus on capital markets and believing you could control the numbers, that data analysis was everything, this was right until five years ago,” Levy, CBRE’s chief economist, declared in a keynote presentation at GlobeSt.’s net lease conference in NYC on Wednesday.
“In the past three or four years, the economy has outperformed what we expected. The labor market has been tighter, wages have gone up. As an economist, I think that’s great,” Levy said. “But as a real estate professional, I was hoping for something better. I was hoping for interest rates to come down.”
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.
