U.S. Capital Markets Glide Path to Clearer Skies
Anything not trophy faces even greater pressure Office sector cap rates by quality tier
12
The historic spreads in low quality tiers will widen materially in the forecast given the pronounced weakness that lower quality assets will confront.
10
8
6
4
2
0
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011 Bottom Tier
2012
2013
2014
2015
2016
2017 Top Tier
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
Overall Office
55
Source: NCREIF, MSCI Real Capital Analytics, Cushman & Wakefield Research
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