Cap rates may have reached their peak, according to a CBRE survey of 200-plus brokers released Monday. The survey also reported a slight compression in the first half of 2025, with the all-property average cap rate narrowing nine basis points to 6.84% at midyear amid volatility in Treasury yields and the announcement of a broader regime of tariffs than was expected.
“While macroeconomic uncertainty persists, we’re seeing clear indications that cap rates have passed their peak,” said Tom Edwards, global president of valuation & advisory services for CBRE. “This compression trend underscores the market’s resilience and adaptability as investors respond to shifting trade policies and broader economic changes.”
CBRE said that multifamily assets are now projected to have the best long-term performance, surpassing industrial properties. Retail remains stable, while the office sector, particularly Class B and C assets, continues to face pricing uncertainty along with wider valuation spreads.
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