Photo of Spencer Levy “US cap rates were largely flat outside of the retail sector in H2 2017 though a shift from sale to refinance activity contributed to lower transaction volumes.” says Levy.

LOS ANGELES—The general direction for cap rates this year will be up, CBRE says in its latest North America Cap Rate Survey. “The recent spike in inflation and anticipated higher interest rates this year will add upward pressure on cap rates, offsetting the downward forces of expected strong institutional and global capital flows,” says Spencer Levy, senior economic advisor and head of Americas research at CBRE.