By Adam Ruggiero, William Pattison and Sultane Cosaj
Conditions in the commercial real estate sector remain largely positive, with economic growth producing solid levels of demand, and supply additions showing signs of moderating. Market expectations remain positive for the majority of property types, but vary according to the market’s perception of structural changes in the economy, demographics, and consumer preferences. These varying expectations are reflected in the current cap rates of each property type. While pricing in the industrial and retail sectors holds few surprises, the current relationship between office and apartment cap rates seems difficult to justify. In this quarter’s issue we explore the historical pricing relationship between the two property types, examine the degree to which it has changed, and discuss how we believe debt and equity investors may wish to respond.
For the abstract, please download the file:
Download (PDF | 624.20 KB)
You are navigating to web pages dedicated to MetLife Investment Management investment funds, which contain information regarding MetLife Investment Management Funds and other commingled investment vehicles managed by MetLife Investment Management. These pages are specific to Funds only, and will not contain information on MetLife Investment Management Advisory services. Please click the button below to acknowledge that you understand that the following pages are specific to MetLife Investment Management Funds and other commingled investment vehicles only. Click “Return to Page” to close this window.