CBRE presents its semiannual U.S. Cap Rate Survey H2 2019 Advance Review – a snapshot of CRE cap rates across the U.S.

 

  • U.S. cap rates remained broadly stable in H2 2019.
     
  • Multifamily cap rates tightened most across lower-quality properties. Suburban cap rates declined by 11 basis points (bps) overall and infill cap rates decreased by 9 bps.
     
  • Industrial cap rates compressed by 13 bps, marginally more than in H1 2019.
     
  • Suburban office cap rates tightened by 11 bps, while CBD office rates were essentially flat.
     
  • Retail cap rates for neighborhood & community centers and high-street retail were unchanged. Cap rates for power centers edged up 8 bps.
     
  • Hotel cap rates were stable.
     
  • The average cap rate spread over the 10-year Treasury rate was nearly unchanged. Spreads were lowest for high-street retail and highest for suburban hotels and retail power centers.

 

CBRE Capital Markets, Valuation & Advisory Services and Research professionals who participate in this survey provide cap-rate ranges based on personal experience with active investors in their markets. The full report, with summary tables, analysis and maps for all property types in major markets, will be published in mid-February