Where Do U.S. Property Values Go From Here?

Key Assumption: Spreads Will Normalize

Office Cap Rates vs Baa (Avg 110 bps)

Industrial Cap Rates vs Baa (Avg 150 bps)

0 1 2 3 4 5 6 7 8 9 10

12

10

8

6

4

2

0

1994

1996

1998

2000

2002 Forecast

2004

2006

2008

2010

2012

2014

2016

2018

2020 Baa

2022

2024

2026

1994

1996

1998

2000 Forecast 2002

2004

2006

2008

2010

2012

2014

2016

2018

2020 Baa

2022

2024

2026

Office Cap Rate

Industrial Cap Rate

Source: NCREIF, Moody’s Investor Services, Cushman & Wakefield Research

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