Posts Tagged ‘real estate’
CRE’s Uneven Recovery: Deal Activity Picks Up, But Risks Persist
According to BlackRock, commercial real estate transaction activity is showing signs of a rebound. Yet with $625 billion in loan maturities ahead and distress levels rising, the road to stability remains uncertain. Momentum Continues — For Now: CRE deal volume rose 14% year-over-year in Q1 2025, marking the fourth consecutive quarter of growth. April maintained…
Read MoreSmall Multifamily Market Shows Signs of Recovery
After a period of declining valuations, the small multifamily sector rebounded in late 2024, with increasing loan originations and strong occupancy rates suggesting market stabilization. Valuations Stabilizing Small multifamily property values saw an upward trend in the second half of 2024, despite a 2.1% year-over-year drop in Q4. However, the pace of decline has slowed,…
Read MoreCap Rates Stabilize Despite Treasury Yield Fluctuations
Despite ongoing volatility in Treasury yields, U.S. cap rates have shown signs of stabilization, according to CBRE’s H2 2024 Cap Rate Survey. Investor Sentiment Shifts CBRE’s survey, covering 3,600 cap rate estimates across 50+ markets, highlights a shift in investor sentiment. Most respondents believe cap rates have peaked, offering a critical benchmark for assessing market…
Read MoreImpact of Interest Rate Cuts on Real Estate Cap Rates
When the Federal Reserve lowers interest rates, it can have a noticeable effect on real estate cap rates, as long-term yields are a key factor in real estate investment decisions. Sensitivity of Cap Rates to Interest Rates Research from CBRE Econometric Advisors (CBRE EA) indicates that real estate cap rates respond differently to changes in…
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