We use DST investment grade DST options as “insurance” for finding replacement properties or filling gaps for leftover boot. Plus other 1031 best practices we can share with you. https://t.co/NGkHluP6yE
Hear @ZemanPaul a 20 year veteran MOB broker share valuable insight including cap rates, forecast, and strategies for both veteran and first time investors.
This week’s show features medical office strategies for investors & healthcare providers.
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Great news for commercial real estate owners and economy: EPA Cuts Biden-Era Refrigerant Rules, Saving Americans Over $2.4 Billion and Lowering Food Costs | US EPA https://t.co/rq0WhUjUgC
Are cap rates really that high?
They’re certainly higher than they were during the ultra-low-rate pandemic period. Across all property types, average cap rates rose from about 5.2% in Q4 2021 to 6.3% in Q1 2026.
But, of course, higher does not necessarily mean high. Relative to long-run history, cap rates around 6.5% remain modest. With the 10-year Treasury near 4.7% (which is already 0.3 percentage points higher than I reference in the blog, due to a recent, sharp spike), the spread between CRE yields and lower-risk assets is still historically narrow. That matters because the risk-free rate sets the opportunity cost for CRE investors, and therefore how they think about their investment alternatives at any given moment.