Cap rates remained stable for the most part in Q1, as investors adjusted to the new environment brought on by dramatic interest rate increases in 2022.
- While Q4 2022 saw the highest cap rates in a decade for many assets and markets, Q1 data reflected some moderation.
- Inflation has declined to 4.3% in the latest reading from a high of 8.1% last year, suggesting that rate hikes are having an effect and may not need to continue.
- Deal flow recovered somewhat this quarter after an extremely quiet Q4 2022.
