Ernest Partners’ recent post on interest rates and real estate cap rates got me thinking—are we focusing too much on today’s data and missing the bigger picture?
Looking back at past interest rate cycles, there’s a clear pattern: cap rates don’t always react as we expect. Multifamily and industrial properties, for example, have historically followed different trends than retail.
Instead of just reacting to short-term changes, what if we used these historical insights to guide our strategy for the next few years?
📊 An interesting analysis from CBRE Research highlights the correlation between long-term interest rates and real estate cap rates. But don’t overlook factors like risk perception and rent trends - they are important as well and will impact the anticipated drop in real estate cap rates over the coming months.
At Ernest Partners, we’re here to help you navigate the turbulent economic landscape and secure the right financing for your projects. Let’s discuss how to move your financing strategy forward!
🔗 Read the full CBRE article via the link in the comments.
#Finance #Investing #InterestRates #RiskManagement #CapRates Laurent Carlier Nicolas van Klinkenberg Sebastien D'Hondt
Great insights from Kevin Aussef on how resurgent capital flows, improved lender balance sheets, and bank deregulation will boost commercial real estate in 2025. With these positive market shifts, Property Technology becomes even more essential, helping streamline processes, enhance transparency, and enable data-driven decision-making across the sector.