Apartment properties and the commercial real estate market as a whole have historically been secure investment options during inflationary periods like the one we are currently facing, and while multifamily sales volumes may be reduced due to rising interest rates, properties in more competitive, low-cap-rate markets may be more sensitive to these changes than those in other markets. Reports published this week outline the long-term decline in cap rates in previous years, but the current rising cost of debt could run counter to this decline, at least in the near-term.
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