Cap rates and discount rates are up, and values are down. Dissecting these moves by sectors...
Reversion estimates, discount rates, and NOI growth assumptions have all changed materially across asset classes but in different ways.
If you think discount rate adjustments would be faster to be re-adjusted, then office and industrial should come back faster than residential and storage.
Devil's in the details, but interesting slide from a CBRE pitch deck.
Did you know that CBRE's core fund outperformed the ODCE index every year since the fund was launched in 2013 (through 2024)? Key question: how do you keep winning the allocation game?
PS -- this chart is a good example of what we cover in our FastTrack course, in practice, showing that investors approach assets with much more nuance than the media and pundits. Want to dive in? DM us to explore joining our upcoming cohort. Only a few spots remaining.
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