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Analysis

Industrial Saw Most Cap Rate Compression In H2 2021

However, cap rates declined across the entire real estate spectrum.

By Lynn Pollack | March 18, 2022 at 07:29 AM

The industrial sector saw the most cap rate compression in the second half of 2021, driven by skyrocketing e-commerce sales, helping the real estate capital markets end the year on a high note. 

“Cap rates declined across the real estate spectrum,” CBRE analysts write in a new report analyzing the firm’s most recent Cap Rate Survey, which was conducted before the Russian invasion of Ukraine. “The industrial sector’s super-charged rent growth amid the pandemic meant this segment accounted for the greatest decline in yields during the past year, regardless of class (e.g., A, B) or risk profile (e.g., Stabilized, Value-Add).”

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