“Where will cap rates eventually settle after they peak?” It’s one of the most-asked questions by real estate investors.
It’s hard to answer though because cap rates don’t settle. They’re dynamic, transitioning from one period to the next. That’s why any short-term outlook for cap rates needs the context of long-term expectations.
Get a detailed answer to the cap rate question and the process for arriving at it in “Look past your nose: Why your short-term view of real estate pricing needs long-term perspective.” It covers:
Read the complete paper.
Intrinsic value is a the perceived or "true value" of an investment, which may or may not equal the current market price due to over- or under-valuation by the market. It's commonly used in fundamental analysis but does not have a universal methodology for calculation. One firm's intrinsic value calculation of an investment may be different from another.
The public REIT market can serve as a leading indicator for the private property market, so we believe private US real estate is poised for recovery.
Matt Brill talks about his expectations for the Federal Reserve, his bullish view of investment grade credit, and opportunities in high yield, emerging markets, commercial real estate, and retail.
Historical increases in US industrial rents have out-performed past trends. Can that run continue? We look at e-commerce and interest rates for an answer.
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The opinions expressed are those of the author, are based on current market conditions and are subject to change without notice. These opinions may differ from those of other Invesco investment professionals.
This does not constitute a recommendation of any investment strategy or product for a particular investor. Investors should consult a financial professional before making any investment decisions if they are uncertain whether an investment is suitable for them.
Data as of December 2023 unless otherwise stated.
Investing in real estate typically involves a moderate to high degree of risk. The possibility of partial or total loss of capital will exist.
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