The 10-year US Treasury is currently at a level not seen since June 2007 – 4.79% after the Oct. 6 trading day and it was at 4.66% after trading on Oct. 10. 

Commercial real estate professionals – like those on Wall Street – are taking notice.

Jeff Wilcox, Principal, Gantry, noted that the historic shift in Treasury levels is putting extreme pressure on cap rates and investor return demands. "Mid- and long-term borrowing rates have increased over 400 basis points in 18 months. The rise in rates has pushed refinance proceeds for all asset classes down by 20% to 25%."

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