JLL United States Interest Rate and Cap Rate Perspective – April 2014

From JLL:

As the Federal Reserve moves from tapering to tightening, we look at three different scenarios based on key economic indicators to come up with our assessment of various impacts of the direction of interest rates and ultimately the effect on property values.  In our healthy and sluggish growth scenarios, property values continue to rise in spite of gradual interest rate increases, and even a slow growing economy should have positive effects on overall real estate fundamentals and liquidity.  Read more about all three plausible economic scenarios, including the correction case, and assigned probabilities to them based on our current forecasts and expectations.

1) Healthy Growth Case

2) Sluggish Growth Case

3) Correction Case

Download  United States Interest Rate and Cap Rate Perspective – April 2014