| Rise in demand, falling cap rates, and increasing investor confidence have driven investment sales to the highest levels since 2007 nationally, though well below peak levels, says JLL's Jon Caplan. The JLL spring capital markets overview reports that cap rates have fallen by as much as 200 bps in core markets like New York, DC, Boston, and San Fran. Institutional debt from banks and life companies is now being supplemented by CMBS, which saw only $10B in funding last year but is anticipated to increase by $40B to $50B this year, Jon says (that's still just a third of the volume we saw at peak levels). And because the past downturn was caused by a lack of demand rather than overbuilding, we're starting to see selective demand for well-located multifamily and office development sites in New York, Jon says. |
BEWARE OF FALLING CAP RATES
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Jon Caplan
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