{"id":1004674351,"date":"2023-08-01T02:55:26","date_gmt":"2023-08-01T10:55:26","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004674351"},"modified":"2023-08-11T03:26:27","modified_gmt":"2023-08-11T11:26:27","slug":"could-cap-rates-be-approaching-a-soft-plateau","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/could-cap-rates-be-approaching-a-soft-plateau\/","title":{"rendered":"Are Cap Rates Approaching a \u2018Soft Plateau?\u2019"},"content":{"rendered":"
\"Richard<\/a>

Richard Barkham, Global Chief Economist & Head of Global and Americas Research, CBRE. Image courtesy of CBRE<\/em><\/p><\/div>\n

Interest rate volatility has pushed up cap rates in the first half of 2023, according to CBRE\u2019s latest report.<\/p>\n

CBRE concedes that market conditions are fluid, but calls the survey \u201ca useful baseline [that] sheds light on how investor sentiment is changing.\u201d<\/p>\n

The survey<\/a> was conducted in late May and early June and reflects transactions during the first half of this year, incorporating more than 3,000 cap rate estimates across more than 50 geographic markets. More than 200 CBRE capital markets and valuation professionals completed the survey.<\/p>\n

CBRE cautions that in this environment of limited capital availability and unusually low sales volume, estimating cap rates \u201cremains challenging.\u201d<\/p>\n

\u201cBut as inflation slowly declines and the Fed nears the end of its rate-hiking cycle,\u201d the report continues, \u201cwe anticipate prices will generally stabilize toward the end of the year, with office values stabilizing in early 2024.\u201d<\/p>\n

Indeed, the survey suggests that cap rates overall have risen more slowly so far this year than in the second half of 2022.<\/p>\n

\n

READ ALSO<\/strong>: How Will Office Space Values Fare in 2030?<\/a><\/p>\n

\n

Helped along by what CBRE describes as \u201cimproved fundamentals, income growth and attractive pricing,\u201d retail has seen the smallest cap rate increase. Because of concern about oversupply in some markets, underwriting for industrial has become more conservative, especially for non-stabilized properties.<\/p>\n

Meanwhile, CBRE says, \u201cOffice cap rates widened most sharply as investors demanded greater pricing discounts amid an uncertain outlook.\u201d<\/p>\n

Better times ahead?<\/h2>\n

To the extent that some investors see the Fed\u2019s cycle of interest rate hikes ending soon, more certainty about interest rates \u201ccould be a catalyst to bring buyers and sellers together. In that scenario, the next six months could bring greater transparency and liquidity,\u201d CBRE predicts.<\/p>\n

In a substantial change from the cap rate survey of six months ago, many CBRE professionals too think that yields will stabilize later this year, based not just on an end to the Fed\u2019s tightening cycle, but also because of progress on inflation.<\/p>\n","protected":false},"excerpt":{"rendered":"

As interest rates become less volatile, CBRE projects that pricing will stabilize by the end of the year.<\/p>\n","protected":false},"author":882,"featured_media":1004593844,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21808,21783,23891,21742],"tags":[32789],"class_list":["post-1004674351","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-investment","category-national","category-latest","tag-cbre"],"acf":[],"yoast_head":"\nAre Cap Rates Approaching a \u2018Soft Plateau?\u2019 - Commercial Property Executive<\/title>\n<meta name=\"description\" content=\"Interest rate volatility has pushed up cap rates in the first half of 2023, according to CBRE\u2019s latest report.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/could-cap-rates-be-approaching-a-soft-plateau\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Are Cap Rates Approaching a \u2018Soft Plateau?\u2019\" \/>\n<meta property=\"og:description\" content=\"Interest rate volatility has pushed up cap rates in the first half of 2023, according to CBRE\u2019s latest report.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/could-cap-rates-be-approaching-a-soft-plateau\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2023-08-01T10:55:26+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-08-11T11:26:27+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/07\/Richard-Barkham-CBRE...jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"900\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Scott Baltic\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/could-cap-rates-be-approaching-a-soft-plateau\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/could-cap-rates-be-approaching-a-soft-plateau\\\/\"},\"author\":{\"name\":\"Scott Baltic\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/#\\\/schema\\\/person\\\/61ac1450f3ffaa0e850b834c28526555\"},\"headline\":\"Are Cap Rates Approaching a \u2018Soft Plateau?\u2019\",\"datePublished\":\"2023-08-01T10:55:26+00:00\",\"dateModified\":\"2023-08-11T11:26:27+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/could-cap-rates-be-approaching-a-soft-plateau\\\/\"},\"wordCount\":356,\"image\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/could-cap-rates-be-approaching-a-soft-plateau\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/wp-content\\\/uploads\\\/sites\\\/46\\\/2022\\\/07\\\/Richard-Barkham-CBRE...jpg\",\"keywords\":[\"CBRE\"],\"articleSection\":[\"Featured\",\"Investment\",\"National\",\"News\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/could-cap-rates-be-approaching-a-soft-plateau\\\/\",\"url\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/could-cap-rates-be-approaching-a-soft-plateau\\\/\",\"name\":\"Are Cap Rates Approaching a \u2018Soft Plateau?\u2019 - Commercial Property Executive\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/could-cap-rates-be-approaching-a-soft-plateau\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/could-cap-rates-be-approaching-a-soft-plateau\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/wp-content\\\/uploads\\\/sites\\\/46\\\/2022\\\/07\\\/Richard-Barkham-CBRE...jpg\",\"datePublished\":\"2023-08-01T10:55:26+00:00\",\"dateModified\":\"2023-08-11T11:26:27+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/#\\\/schema\\\/person\\\/61ac1450f3ffaa0e850b834c28526555\"},\"description\":\"Interest rate volatility has pushed up cap rates in the first half of 2023, according to CBRE\u2019s latest report.\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/could-cap-rates-be-approaching-a-soft-plateau\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/could-cap-rates-be-approaching-a-soft-plateau\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/could-cap-rates-be-approaching-a-soft-plateau\\\/#primaryimage\",\"url\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/wp-content\\\/uploads\\\/sites\\\/46\\\/2022\\\/07\\\/Richard-Barkham-CBRE...jpg\",\"contentUrl\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/wp-content\\\/uploads\\\/sites\\\/46\\\/2022\\\/07\\\/Richard-Barkham-CBRE...jpg\",\"width\":1200,\"height\":900,\"caption\":\"Richard Barkham, Global Chief Economist & Head of Global and Americas Research, CBRE. Image courtesy of CBRE\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/could-cap-rates-be-approaching-a-soft-plateau\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Are Cap Rates Approaching a \u2018Soft Plateau?\u2019\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/#website\",\"url\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/\",\"name\":\"Commercial Property Executive\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/#\\\/schema\\\/person\\\/61ac1450f3ffaa0e850b834c28526555\",\"name\":\"Scott Baltic\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/wp-content\\\/uploads\\\/sites\\\/46\\\/2022\\\/06\\\/Scott.jpg?w=96\",\"url\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/wp-content\\\/uploads\\\/sites\\\/46\\\/2022\\\/06\\\/Scott.jpg?w=96\",\"contentUrl\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/wp-content\\\/uploads\\\/sites\\\/46\\\/2022\\\/06\\\/Scott.jpg?w=96\",\"caption\":\"Scott Baltic\"},\"description\":\"Scott Baltic has been a contributing editor with Commercial Property Executive since 2011 and also wrote for its predecessor, Commercial Property News. He started writing about CRE in 1988 for a group of Chicago-based publications and in 1989 became the editor of Midwest Real Estate News. After moving on from there in 1991, Baltic continued writing occasionally about real estate, for publications like the Chicago Sun-Times, National Real Estate Investor, Urban Land, Shopping Center World and Architect\u2019s Newspaper. He earned a master\u2019s in journalism from Northwestern University\u2019s Medill School of Journalism and has a bachelor\u2019s from North Park University.\",\"url\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/author\\\/scott-baltic\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Are Cap Rates Approaching a \u2018Soft Plateau?\u2019 - Commercial Property Executive","description":"Interest rate volatility has pushed up cap rates in the first half of 2023, according to CBRE\u2019s latest report.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.commercialsearch.com\/news\/could-cap-rates-be-approaching-a-soft-plateau\/","og_locale":"en_US","og_type":"article","og_title":"Are Cap Rates Approaching a \u2018Soft Plateau?\u2019","og_description":"Interest rate volatility has pushed up cap rates in the first half of 2023, according to CBRE\u2019s latest report.","og_url":"https:\/\/www.commercialsearch.com\/news\/could-cap-rates-be-approaching-a-soft-plateau\/","og_site_name":"Commercial Property Executive","article_publisher":"https:\/\/www.facebook.com\/CPExecutive","article_published_time":"2023-08-01T10:55:26+00:00","article_modified_time":"2023-08-11T11:26:27+00:00","og_image":[{"width":1200,"height":900,"url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/07\/Richard-Barkham-CBRE...jpg","type":"image\/jpeg"}],"author":"Scott Baltic","twitter_card":"summary_large_image","twitter_creator":"@cpexecutive","twitter_site":"@cpexecutive","schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.commercialsearch.com\/news\/could-cap-rates-be-approaching-a-soft-plateau\/#article","isPartOf":{"@id":"https:\/\/www.commercialsearch.com\/news\/could-cap-rates-be-approaching-a-soft-plateau\/"},"author":{"name":"Scott Baltic","@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/61ac1450f3ffaa0e850b834c28526555"},"headline":"Are Cap Rates Approaching a \u2018Soft Plateau?\u2019","datePublished":"2023-08-01T10:55:26+00:00","dateModified":"2023-08-11T11:26:27+00:00","mainEntityOfPage":{"@id":"https:\/\/www.commercialsearch.com\/news\/could-cap-rates-be-approaching-a-soft-plateau\/"},"wordCount":356,"image":{"@id":"https:\/\/www.commercialsearch.com\/news\/could-cap-rates-be-approaching-a-soft-plateau\/#primaryimage"},"thumbnailUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/07\/Richard-Barkham-CBRE...jpg","keywords":["CBRE"],"articleSection":["Featured","Investment","National","News"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.commercialsearch.com\/news\/could-cap-rates-be-approaching-a-soft-plateau\/","url":"https:\/\/www.commercialsearch.com\/news\/could-cap-rates-be-approaching-a-soft-plateau\/","name":"Are Cap Rates Approaching a \u2018Soft Plateau?\u2019 - Commercial Property Executive","isPartOf":{"@id":"https:\/\/www.commercialsearch.com\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.commercialsearch.com\/news\/could-cap-rates-be-approaching-a-soft-plateau\/#primaryimage"},"image":{"@id":"https:\/\/www.commercialsearch.com\/news\/could-cap-rates-be-approaching-a-soft-plateau\/#primaryimage"},"thumbnailUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/07\/Richard-Barkham-CBRE...jpg","datePublished":"2023-08-01T10:55:26+00:00","dateModified":"2023-08-11T11:26:27+00:00","author":{"@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/61ac1450f3ffaa0e850b834c28526555"},"description":"Interest rate volatility has pushed up cap rates in the first half of 2023, according to CBRE\u2019s latest report.","breadcrumb":{"@id":"https:\/\/www.commercialsearch.com\/news\/could-cap-rates-be-approaching-a-soft-plateau\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.commercialsearch.com\/news\/could-cap-rates-be-approaching-a-soft-plateau\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.commercialsearch.com\/news\/could-cap-rates-be-approaching-a-soft-plateau\/#primaryimage","url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/07\/Richard-Barkham-CBRE...jpg","contentUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/07\/Richard-Barkham-CBRE...jpg","width":1200,"height":900,"caption":"Richard Barkham, Global Chief Economist & Head of Global and Americas Research, CBRE. Image courtesy of CBRE"},{"@type":"BreadcrumbList","@id":"https:\/\/www.commercialsearch.com\/news\/could-cap-rates-be-approaching-a-soft-plateau\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.commercialsearch.com\/news\/"},{"@type":"ListItem","position":2,"name":"Are Cap Rates Approaching a \u2018Soft Plateau?\u2019"}]},{"@type":"WebSite","@id":"https:\/\/www.commercialsearch.com\/news\/#website","url":"https:\/\/www.commercialsearch.com\/news\/","name":"Commercial Property Executive","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.commercialsearch.com\/news\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/61ac1450f3ffaa0e850b834c28526555","name":"Scott Baltic","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/06\/Scott.jpg?w=96","url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/06\/Scott.jpg?w=96","contentUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/06\/Scott.jpg?w=96","caption":"Scott Baltic"},"description":"Scott Baltic has been a contributing editor with Commercial Property Executive since 2011 and also wrote for its predecessor, Commercial Property News. He started writing about CRE in 1988 for a group of Chicago-based publications and in 1989 became the editor of Midwest Real Estate News. After moving on from there in 1991, Baltic continued writing occasionally about real estate, for publications like the Chicago Sun-Times, National Real Estate Investor, Urban Land, Shopping Center World and Architect\u2019s Newspaper. He earned a master\u2019s in journalism from Northwestern University\u2019s Medill School of Journalism and has a bachelor\u2019s from North Park University.","url":"https:\/\/www.commercialsearch.com\/news\/author\/scott-baltic\/"}]}},"jetpack_featured_media_url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/07\/Richard-Barkham-CBRE...jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004674351","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/users\/882"}],"replies":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/comments?post=1004674351"}],"version-history":[{"count":8,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004674351\/revisions"}],"predecessor-version":[{"id":1004676084,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004674351\/revisions\/1004676084"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/media\/1004593844"}],"wp:attachment":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/media?parent=1004674351"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/categories?post=1004674351"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/tags?post=1004674351"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}