To view this piece in its entirety, click through to the PDF of the report; Considering Cap Rates in Miami Area Commercial Real Estate. It begins with:
Commercial real estate investors and professionals tend to discuss cap rates like bond yields, frequently losing track of the underlying risk premium and growth potential factors that drive them. In a city like Miami, on the radar of global investors for its potential, this misses much of the… (more)
Links related to this report include:
Cap Rates & Real Estate Cycles – This research paper by Babson Capital offers a nice historical perspective on cap rates during cycles as far back as the late 1970s.
Cap Rates & Interest Rates; Some Observations – This piece from CBRE does a nice job of considering what happens to cap rates in different interest rate environments, graphically representing how cap rates historically have tended to absorb interest rate increases.