As most economic indicators continue to improve, coupled with the $1.9Tr. stimulus plan, the US 10 year Treasury Note broke the 1.70% mark – a level seen January of last year.
Most observers believe this is a result of inflationary pressures, however we are seeing signs of cap rate compression in certain asset classes, which seems counterintuitive especially since the increase in rates results in the increase of the Weighted Average Cost of Capital (WACC). It is interesting to see during the next couple of quarters if these expectations translate into a stabilization and maybe even increase in rents and
