Upward Adjustments in Cap Rates?

A recent article from GlobeSt.com discussed the continuing rise in interest rates, as well as cap rate compression. Traditionally, there is a direct correlation between interest rates and cap rates. As interest rates rise, so do cap rates. However, we are seeing the opposite effect take place, primarily due to an increase of capital in the market.

The flood of capital in the market is directly related to people being frustrated earning less than 1% in banks and money market accounts. As they try to branch out to earn higher returns they have started to turn to Real Estate. This is not only a problem in the United States, but in the global market as well. Many foreigners are seeing the US as a safe haven for Real Estate investments. Read the full article by clicking here.

Let Front Street Commercial Real Estate group help you find and finance your next real estate investment project.  For more information on financing, click here.

Click here for more Front Street news.

Comment

Virginia MacKoul

Virginia is a graduate from the University of Florida's College of Design Construction and Planning with a degree in Sustainability and the Built Environment, and a minor in Urban Regional Planning. Virginia joined the Front Street team in 2011, as an intern. Upon graduation, Virginia joined the Front Street team full-time as the Director of Client Services. Ms. MacKoul’s addition furthers Front Street’s continued growth and expansion within Gainesville and other North Central Florida markets. She was promoted to Director of Marketing in 2014 and now manages the firm’s team of interns and oversees all marketing and branding activity. Virginia was born in Boston and moved to Lee County, Florida in 1997. Virginia graduated her high school's International Baccalaureate program and started at the University of Florida with a focus on Architecture. Virginia shares Front Street's passion of giving back to the community and those in need. Virginia's hobbies include photography, cooking, football, movies, music, and spending time with her dog, Brinkley.

 Subscribe in a reader

Subscribe to Front Street's News Page by Email