In the latest report by CBRE, going-in cap rates, exit cap rates, and unlevered IRR targets for prime assets showed a slight improvement in the first quarter of 2024. This is the first increase since the Federal Reserve started raising interest rates in early 2022. During Q1, going-in and exit cap rates stabilized at 12 basis points after declining for eight consecutive quarters. CBRE is optimistic that the positive spread will likely continue unless unexpected economic deterioration occurs.
