Capitalization rates for institutional-quality real estate investments are expected to decline in 2015, before rising in 2016 and 2017.
According to respondents in the Urban Land Institute's Real Estate Consensus Forecast for April 2015, NCREIF cap rates are expected to fall to 5.3% this year and then rise to 5.6% and 5.9%, respectively, in the subsequent two years.
Compared with survey responses six months ago, cap rate forecasts are lower for 2015 and 2016.
