March 1, 2023 | By Debo Ayeni — The rise in interest rates that began in early 2022 has led to many investor conversations on the effect higher interest rates could have on cap rates. One commonly held view is that higher interest rates will inevitably lead to higher cap rates. However, there are other points of views on this topic. When Things Are Not What They Seem: Understanding the Relationship Between Cap Rates and Interest Rates examines the relationship between interest rates and cap rates, while also exploring different points of view on the impact a rising interest rate environment could have on future cap rates.
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