Cap rates may have passed their cyclical peak, with early signs of compression emerging for some asset types, according to CBRE in its H1 2025 Cap Rate Survey.
Other key findings:
Yield movement: All-property cap rates fell by 9 basis points, with consistent movement across asset types indicating a shift toward stabilization.
Macroeconomic impact: Volatile Treasury yields and uncertainty created by tariff announcements have modestly dampened expectations for transaction volume, adding complexity to investment planning.
Sector performance outlook: Multifamily assets now lead in projected long-term performance, surpassing industrial. Retail remains steady, while office continues to face pricing uncertainty.
Market-level trends: Cap rate estimates remained largely stable across regions, thou
