Friday, September 17, 2010

What’s going on with these Cap rates?

What’s going on with these Cap rates?  Scarcity premiums; cap rate compression….what is anything really worth?

        We have made it our business to track cap rates; tenant credit and real estate intrinsic for years to assist the investment decisions of our valued clients.  Many have viewed these investment grade assets as a bond diversification alternate with the tax benefit of real estate and as a hedge against inflation.  What are the implications of deflation on the current market uptick? What does the current debt market allow to secure any credible returns?  Where are the spreads?