Download our latest U.S. Office Investment Outlook at us.jll.com/research. Cap rates are below prior peak levels, yet real estate capital markets remain liquid across debt and equity. Is the pricing gap representative of the risks associated with these markets?

1. WHAT TO WATCH IN 2017
Cap rates are below prior peak levels, yet real estate
capital markets remain liquid across debt and equity.
Is the pricing gap representative of the risks
associated with these markets?
Less than one-quarter
are seeing softening
Cap rates continue to compress,
but at a moderating pace
The average cap rate
for secondary markets
A historical high for the secondary market
yield discount relative to primary markets
The average cap rate
for primary markets
Office asset pricing
111basis
points
More than two-thirds of the 32 largest
office markets are seeing year-over-year
cap rate compression
39bps in 2015 30bps YTD in 2016