IE Business Daily Business news for the Inland Empire.
Cap rates, which indicate the rate of return expected to be generated on a real estate investment property, are expected to remain stable this year, according to CBRE.
“Sustained investor interest in the region’s robust infrastructure, globally integrated economy, and diversified workforce continue to keep area cap rates at or near all-time lows, said Eric Willett, regional director of research and thought leadership, in CBRE’s last Cap rate report, which was released earlier this week.
“In particular, Greater Los Angeles’ unmatched logistics infrastructure – from nation-leading ports to innovative distribution facilities – is driving unprecedented inflows of capital into the region’s industrial real estate. These dynamics have helped to compress industrial cap rates by an additional 8 basis points.”
Cap rates in the Inland Empire and Greater Los Angeles stabilized in the second half of last year for most real estate categories. The exception to that was industrial, where rates dropped another eight basis points to 5.04 percent, the report stated.
