U.S. Cap Rate Survey H1 2021

Understanding Cap Rate Movements as Commercial Real Estate Investment Activity Revives

Extraordinary market conditions over the past year have made it difficult for investors to confidently assess changes in property pricing. As a result, CBRE has changed the usual methodology of its semiannual Cap Rate Survey for this year to compare H1 2021 with pre-pandemic H2 2019 cap rates.

This year’s H1 survey shows the extent to which extraordinary government fiscal and monetary measures helped to stabilize the economy and thus supported real estate asset values.

While uncertainty remains, cap rates are expected to increase in very few markets through year-end. This is consistent with CBRE’s view that a strong economic recovery will benefit property values.

What’s in the Report

CBRE’s U.S. Cap Rate Survey offers industry-leading insights into cap rate changes by sector and individual markets. Prepared by CBRE Research, this report’s findings reflect the results of a survey of CBRE Capital Markets and Valuation professionals across the country and an analysis of the top 25 markets by investment volume.