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Rising Cost of Capital Squeezing Multifamily Cap Rates

126514 sign percent on wooden table Article 202209281728 - Rising Cost of Capital Squeezing Multifamily Cap Rates

The increasing cost of capital and mounting concerns about ex-ante exit cap rates will ultimately drive buyers’ bids lower and property yields higher for the multifamily sector. So, multifamily property values will face pressure from both the Fed pushing rates and banks following suit with loan interest rates.