The REAL Effects of Rising Interest Rates on The Real Estate Market // CBRE released their latest semi-annual Cap Rate Survey earlier this month, which included more than 3,600 cap rate estimates across 50 geographic markets throughout the US.
And even though this information is already a little bit stale with how quickly the market is changing, these data points still provide some really helpful insight into whatβs been happening in the real estate market across the country over the last several months, and the quantifiable impacts that interest rate hikes have had on CRE pricing thus far.
So to drill down on some of the most important takeaways from this report, in this video, we'll talk through where cap rates are today, the impact these changes have already had on the market, and what this all might mean for you as a real estate investor or industry professional in 2023 and beyond.
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π Timestamps π
0:00 Introduction
1:24 Market-Wide Cap Rate Changes
3:45 Quantifying Valuation Changes
5:26 Quantifying Equity Value Changes
6:48 Higher Starting Cap Rates = Lower Valuation Drops
8:11 What To Expect Going Forward
10:00 How To Learn Real Estate Investment Analysis
#realestateinvesting #commercialrealestate
*Nothing in this video should be construed as tax, legal, accounting, valuation, or financial advice or recommendation. All information in this video is intended solely for educational purposes, and you are advised to consult with your own personal professional advisors regarding your personal investment decisions.
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Research and articles referenced in this video:
https://www.cbre.com/insights/reports/us-cap-rate-survey-h2-2022
https://www.yardimatrix.com/Publications