As one bubble’s pop nears crescendo, chances are another is forming right under our feet.
“Where’s the next bubble?” ask our Sound Of Cannons readers. “How about in commercial property? This chart from The Wall Street Journal tells you all you need to know about commercial real estate,”
“Falling cap rates mean rising property prices -- just as expanding price-earnings ratios mean higher stock prices. And here we are, with years of falling cap rates on office and apartment buildings. They can’t get much lower. The 10-year Treasury rate is right underneath it.”
If commercial cap rates are near their bottom, prices are near their top. That leaves only one path for commercial real estate to follow
“Where’s the next bubble?” ask our Sound Of Cannons readers. “How about in commercial property? This chart from The Wall Street Journal tells you all you need to know about commercial real estate,”
“Falling cap rates mean rising property prices -- just as expanding price-earnings ratios mean higher stock prices. And here we are, with years of falling cap rates on office and apartment buildings. They can’t get much lower. The 10-year Treasury rate is right underneath it.”
If commercial cap rates are near their bottom, prices are near their top. That leaves only one path for commercial real estate to follow
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