Market Data
Macroeconomic data drives real estate valuations. We track the spread between risk-free rates (Treasuries) and real estate yields (Cap Rates) to identify pricing anomalies.
Risk-Free Rates (Q3 2024)
- 1-Year Treasury 5.10%
- 2-Year Treasury 4.72%
- 10-Year Treasury 4.21%
An inverted yield curve (where short-term rates exceed long-term rates) makes highly leveraged, short-term bridge debt extremely expensive.
Commercial Cap Rates (National Avg)
- Multifamily (Class A) 5.25%
- Industrial (Core) 4.90%
- Retail (Strip Center) 6.50%
When the 10-Year Treasury yield equals or exceeds prime Cap Rates, investors experience "negative leverage," putting downward pressure on asset prices.