Capitalization rates appear to be peaking, a situation that marks a critical turning point in the commercial real estate investment cycle. As a key metric for investors, cap rates measure the expected initial yield on a property before factoring in debt. Like bonds, cap rates move inversely with price: when yields rise, prices fall, and vice versa.
What to watch in 2025: Look for cap rates to peak
Property market structure appears to be setting up for a topping process
By Chad Littell
CoStar Analytics
January 2, 2025 | 4:46 P.M.
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