Q1 2024 REIT Cap Rate Perspective: REITs and Rate Expectations

April 2024

As we wrap up the first quarter of 2024, the market is increasingly considering a scenario of a “higher for longer” interest rate environment, primarily fueled by robust consumer and labor markets. As previously outlined in our 2024 outlook series, this aligns with our expectations, suggesting that 10-year treasury yields are likely to remain somewhere near 4% for the foreseeable future and real estate must be repriced in this new normal. The REIT market has already repriced real estate for this environment and provides an indication of the direction of private market valuations.

Examining cap rates in both the listed and private real estate markets, our Q1 2024 REIT Cap Rate Perspective Full Report offers valuable insights into the trajectory of pricing across core and alternative sectors, presenting key data points to illuminate market dynamics.