Cap Rates Are Crushing CRE Deals Even More Than Before

By Kevin Olds | May 4, 2023


Ed Fernandez, President and CEO at 1031 Crowdfunding, offers his take on how cap rates are impacting the future of CRE deals to Erik Sherman at GlobeSt. Ed explains the correlation between cap rates, interest rates and negative leverage. “At these rates, debt causes negative leverage and that hurts your cash flow. You can’t deploy capital that won’t offer that return on the hope you’ll find another deal that will make a blended rate,” explains Fernandez.

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