Serguei Chervachidze, Ph.D., Capital Markets Economist, CBRE Econometric Advisors
Raymond Torto, Ph.D., CRE, Global Chief Economist, CBRE
With the Fed set to taper the QE program sometime in the coming year, how will the resulting interest rate increases affect capitalization rates? In this Global In-Sights video, Serguei Chervachidze, CBRE Econometric Advisors’ Capital Markets Economist, addresses this question occupying investors’ minds. Cap rates will not track Treasury increases one-to-one, Dr. Chervachidze argues; rather, the degree to which cap rates react will be determined by the health of the overall economy.
View the U.S. Cap Rates, Tapering, and the Economy Video | November 2013