Encouraging data indicating diminishing inflation, a moderating labor market, and a more restrained tone from the FOMC suggests the Federal Reserve might have concluded its interest rate hikes. As expected, this acted as a catalyst for REIT performance resulting in cap rate compression across the public markets since the 10-year yield peaked in October. If we are correct about the end of the Fed’s rate hike cycle, we anticipate REITs will maintain their recent upward momentum despite prevailing market uncertainties as we head into 2024.
Examining cap rates in both the listed and private real estate markets, our Q4 2023 REIT Cap Rate Perspective Summary Report offers valuable insights into the trajectory of pricing across core and alternative sectors, presenting key data points to illuminate market dynamics.
