Industry observers, for the most part, don’t see multifamily cap rate increasing. Most expect them to stay where they are or keep dropping, according to a recent Jones Lang LaSalle/RealShare Apartments Outlook 2012 Survey.
Most respondents, at 39%, said cap rates will stay put next year. About 21% say cap rates will drop by 50 basis points, and another 15% predict a basis-point drop of more than 50. Only 15% expect cap rates to rise.
“I think cap rates are going to stay the same in 2012, for two reasons: one is the economy -- it’s going to basically stay the same next year and interest rates are the lowest we’ve ever seen and I just don’t see that changing soon, “ said Paul Belden, president and principal, WLA Investments.
Read more...GlobeSt.com - Survey: Most Think Multifamily Cap Rates Will Stay Put - Daily News Article
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