16 Jan 2019 This article looks at hotel sales and capitalization rate trends, the impact of slowing RevPAR growth on hotel values, changes in economic conditions overnight, positive attributes in an “up” market for investors chasing yield. 20 Aug 2018 This is why assets in New York City with 4% cap rate could increase yield to 6-8 % and appreciate significantly in value. Conversely, in markets like the Midwest, where liquidity and economic growth prospects are low, 28 Aug 2018 Real estate investors are always drawn to cap rate as their go-to measure for potential investments. Your return is not the cap rate, it is the cash-on-cash return, especially since the majority of commercial real estate purchases are financed with a The above examples show what is a very important driver of real estate yield- the spread (difference) between cap rate and financing cost.