Forecasting Portland Apartment Cap Rates

Forecasting cap rates is no easy task, but looking at historical trends can help. This chart presents 10 year treasury yields in blue and cap rates for Portland apartments (Source: CoStar) in orange. While the spread has varied, these two rates have mostly moved in the same direction. The average spread since 2000 has been 330 basis points.

Cap Rate vs. 10 year treasury.JPG
Posted on January 29, 2019 .