Interest rates are finally rising, but that doesn’t mean cap rates on apartment properties have to rise too.
“This interest rate increase could be a non-event on cap rates,” says James Costello, senior vice president for New York City-based research firm Real Capital Analytics (RCA).
It’s easy to assume that higher interest rates will naturally lead buyers of apartment properties to demand higher yields on their investments. But investor yields and interest rate often move in different directions.
Read more...Apartment Building Buyers Unmoved by Interest Rate Hike