There are strengthening opinions that the commercial real estate markets are approaching their bottom and new “green shoots are emerging,” based on declines of approximately 100 bps in the 10-year Treasury in recent months.

This is expected to lead to a gradual improvement in investor sentiment, according to JLL. In its Investor Survey and Trends Update for Seniors Housing, rising debt costs have led to widespread repricing across all commercial real estate. Cap rates for seniors housing averaged 5% in Q2 2021, according to NIC MAP, and since then, they have expanded by around 200 bps.


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