Cap rate goes up every year

[Charlotte Dunford]

Why does the cap rate go up every year? Is it because of inflation?

[Jim Tassoni]

@Charlotte Dunford Cap Rates are a function of market forces.  When investors are feeling optimistic or bullish about market dynamics we usually see cap rate compression as they bid up prices.  The opposite is true when they are feeling pessimistic or bearish.  Cap rates do not go up or down year after year, they are a function of underlying market dynamics.  Hope this helps.