Even though we expect the Fed to go into cutting mode within the next six months and the 10-year Treasury yield to fall below 4% in 2024, we don’t expect this to provide any respite for real estate. Indeed, given we think the 10-year yield will range between 4-4.25% in 2025-28, investors will be forced to come to terms with cap rates at levels not seen since 2013 as they wean off the ultra-low rates of the last decade.
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