Commodity office stock is tough to price these days
The most recent Cap Rate Survey suggests greater uncertainty around office pricing, particularly for Class B and C assets where fundamentals and financial performance have deteriorated significantly more.
Office investment activity is slowly reviving, with most capital targeting higher quality buildings with stronger occupancy levels and better NOI prospects. Meanwhile, the Class B&C segments continue to struggle.
Capital markets pros believe cap rates have peaked
Every six months, CBRE surveys its U.S. capital markets and valuations professionals on whether they expect cap rates to rise or fall, and by how much.