Apartment Cap Rate Trends
The mean cap rate, calculated on a dollar-weighted basis by quarter, declined by 30 basis points during the third quarter to 6.3%. As the mean cap rate shows, apartment cap rates have largely bottomed out. Over the last four years, the mean cap rate has fluctuated within a relatively narrow band of 50 basis points. That’s not to say that cap rates in the future won’t decline a bit more, but the majority of cap rate compression has clearly ended.
Read more...Q3 2014 Cap Rate Trends - ReisReports