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Forecast sees yields set to fall across commercial property next year

Pricing, liquidity and bond market trends suggest capitalization rates likely to compress
Capitalization rates near 5% are still evident among high-quality, well-located assets such as the Gateway at Arvada Ridge Apartments in Arvada, Colorado. Blackstone sold this 296-unit complex to TA Realty in August for $108.75 million, or about $367,400 per unit. (CoStar)
Capitalization rates near 5% are still evident among high-quality, well-located assets such as the Gateway at Arvada Ridge Apartments in Arvada, Colorado. Blackstone sold this 296-unit complex to TA Realty in August for $108.75 million, or about $367,400 per unit. (CoStar)
CoStar Analytics
November 13, 2025 | 7:11 P.M.

CoStar’s latest forecast indicates that yields are poised to edge lower across commercial real estate types next year.

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News | Forecast sees yields set to fall across commercial property next year