Rising Bond Yields Could Spark 40% Drop in Office Prices by 2024, Capital Economics Predicts
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The rise in bond yields could spark a price crash in the office sector according to Capital Economics.
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Rising Treasury yields impact office building cap rates, lowering prices.
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Office prices could see a 40% peak-to-trough decline by end of 2023, the firm predicted.
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Higher bond yields mean higher cap rates, which are inversely related to property prices.
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Office cap rates could jump to 6.5% by end of 2024, pushing office prices down 40% peak-to-trough.