Q3 2022 REIT Cap Rate Perspective: Interest Rates and Inflation: A Dynamic Impact on Cap Rates

September 2022


The rising cost of debt is impacting underwriting and return requirements across the real estate investment market. Thus, as we move into the last quarter of 2022, we expect to see further cap rate expansion across the board.  However, the spreads between cap rates and debt costs are likely to vary by sector, a topic which we cover in this quarter’s report.