The average US CRE cap rate is ~5.4%, below the yield on US IG REIT debt (5.8%), similar to yields on AAA CMBS (5.3%) and well below the yields on BBB CMBS (~11.5%). In housing, 30-year mortgage rates are ~7.1%, well above the rental yield on the average home.
Read More >>Morgan Stanley: Across Asset Classes, The Capital Structure Increasingly Looks Upside Down