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
