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Introduction 1
The H2 2024 Cap Rate Survey provides a fresh perspective of where market sentiment is trending.
Welcome to CBRE’s H2 2024 Cap Rate Survey (CRS). This survey comes at a time when investment sales volume remains muted but investor sentiment has improved. After an annual decline in sales volume of 51% in 2023, 2024 saw an increase of 9%.
The CRS captures 3,600 cap rate estimates across more than 50 geographic markets to generate key insights.
This data derives from deals that occurred in the last five months of 2024. We acknowledge that market conditions are fluid, but we believe the CRS provides a useful baseline and reveals how investor sentiment is changing.
More than 200 CBRE real estate professionals completed the H2 2024 CRS with their real-time market estimates between November and December. Given the rapidly changing macro environment, survey results may not reflect recent exogenous events or current market conditions. Readers should view all cap rate estimates within this context.
Cap Rates Held Steady During the Second Half of 2024
Treasury yields were extremely volatile during 2024, as financial markets grappled with economic data that sent mixed signals about the outlook for inflation, Federal Reserve policy and where long-term interest rates will settle.
The 10-Year Treasury yield started the year below 4% and peaked at 4.7% in late April. Ultimately continued disinflation and expectations for Fed rate cuts pushed the 10-Year Treasury yield down to 4.2% in June and 3.6% in September. But yields reversed course during Q4 as the Fed signaled there would be fewer future cuts than the market was expecting. This pattern has continued into 2025 as the large federal budget deficit, policy uncertainty, and varying inflation signals keep bond markets guessing but with an upward bias.
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