The spread between interest rates and commercial real estate cap rates is near the widest point on record, offering investors a rare opportunity to capitalize on this yield premium and boost levered returns.
Tag Archives: Interest Rates
Randolph is a Multifamily Investment Sales Broker with eXp Commercial servicing Multifamily Buyers and Sellers in the Greater Chicago Area.
Latest posts by Randolph Taylor (see all)
- New Listing Indian Creek Apartments 1015-1025 N Farnsworth Ave Aurora IL 60505 - September 17, 2023
- Cooling Future Deliveries Set the Stage for a Rent Growth Comeback - September 11, 2023
- Price Gap Between Rent and Home Ownership in Chicago - August 6, 2023
(click to play video below) Low Rates Create Favorable Real Estate Investment Climate
Lower borrowing rates may be temporary; if trade war ends, rates could rise quickly
The spread between owning and renting will weigh on single-family sales as the monthly mortgage payment for a median-priced home is now $339 more than the average monthly rent for an apartment, the highest spread since 2008
The 10-year Treasury inched past 3 percent, drawing concerns from some investors. Strong economic momentum, however, reiterates the health of the current economic cycle which bodes well for all sectors of commercial real estate.