From Serguei Chervachidze, Capital Markets Economist at CBRE Econometrics: “What’s the long-term spread between cap rates and Treasurys?” This question, with a few variations, comes from all types of clients—from small investment shops to large hedge funds staffed with many quants.
This is the wrong question to be asking, however, in that it assumes Continue reading Research shows that Apartment Building and CRE cap rate spreads shouldn’t be modeled as constant