Capitalization rates for U.S. commercial real estate assets were little changed during the first half of 2017, with slight increases or decreases in pricing depending on the asset type, according to CBRE’s North America cap rate survey H1 2017.
The industrial and multifamily sectors registered small declines in cap rates, while office and hotel sectors had modest increases. Retail cap rates showed larger increases overall.
The general outlook for cap rates and returns on cost during the second half of 2017 is for stable pricing. However, the sentiment of survey respondents varied by property type, segment, class and metro-tier grouping. The consensus is that if rates do change during the second half of 2017, they are more likely to increase modestly.