Resources

Multifamily Capital Markets Update (February 2020)

As of late, the 10-year Treasury Yield has declined by over 20 basis points due to various macro-economic forces.  Cap rates continue to hold steady or slightly decline in some markets.

Below are key takeaways from the following reports:

U.S. Cap Rate Survey Advanced Review – CBRE – Link

4Q19 United States Capital Markets Report – Newmark Knight Frank – Link

2020 U.S. Real Estate Market Outlook – CBRE Link 

Download the PDF version of this report here:

U.S. Cap Rate Survey Advanced Review

CBRE

  • Cap rates have declined an average of 10 bps since the 1st half of 2019
  • Suburban market cap rates have declined over 11 bps on average, slightly more than infill
  • Austin TX had the largest cap rate compression

4Q19 United States Capital Markets Report

Newmark Knight Frank

  • Price per unit averaged 316K per door in primary markets
  • Price per unit averaged 158K per door in secondary markets
  • Sales volume for Multifamily topped 183B for 2019
  • Cap rates ended 2019 at 4.8% for primary markets, a slight increase

2020 U.S. Real Estate Market Outlook

CBRE

  • Vacancy will rise 20bps to 4.5% overall
  • Rent growth will decline to 2.4%
  • Multifamily deliveries will remain stable as they have in the last 5 years
  • Suburban Multi will outperform infill locations for 2020

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