Cap Rates No Longer Exists.

[Darrion P.]

That's what the broker told me!

Really? I replied. Yesss! He responds. The whisper started at 6mil, offer settled @ 6.3. 

Well, congratulations. What's your level of certainty it will close.  

I'm pretty confident! The offer went hard day 1, he boast. But with that being said, send me your contact info I've got a few more on deck. 

Will do! We'll chat soon I concluded. 

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Question: I've noticed that the OM's I've received lately do not have a cap rate. Are you having a similar experience?

[Spencer Gray]

What are you using the cap rate to measure?

Cap rates today are significantly decoupled from projected return due to inflationary pressure. They do act as a good barometer of market sentiment. I suspect cap rates will become a more relevant KPI in the future once growth slows.