Job growth up, cap rates down. Coincidence?

CBRE notes strong correlation between two data points

By Kevin McQuaid
| 6:00 a.m. December 7, 2018
| 0 Free Articles Remaining!

Commercial Real Estate

Sir Isaac Newton’s Third Law of Motion states that for every action there is an equal and opposite reaction. In the world of commercial real estate, the law might be applied — loosely — to the relationship between employment growth and cap rate compression.

In a new report from commercial real estate brokerage CBRE entitled “Cap Rate Dynamics,” the firm dissects the close, and surprising, correlation between the two.