Cap rates for commercial real estate assets stable in H1 2019

An advantageous balance of moderate growth, low inflation, and falling long-term interest rates in the United States kept capitalization rates for commercial real estate assets broadly stable in the first half of 2019, according to the latest research from global property adviser CBRE.

The CBRE North America Cap Rate Survey found that multifamily and industrial cap rates tightened the most in first half 2019, while office, retail and hotel cap rate movements were more modest. Continued cap rate stability is expected in the remainder of 2019, with the hotel sector experiencing the most mixed sentiment.

“While the fortunes of the global economy should be watched closely due to increased tensions over trade with China, Persian Gulf hostilities, and the prospect of a hard Brexit, there seems to be sufficient economic momentum and mon