10 Takeaways from CBRE’s 2025 Cap Rate Survey for Multifamily Investors

The latest CBRE U.S. Cap Rate Survey (H1 2025) is out, and the results paint a clear picture: multifamily is still king. For those of us who invest in mid-sized multifamily properties with a buy-and-hold strategy, the survey confirms a lot of what we’ve been teaching all along, focus on markets people will want to rent in for decades to come.

Here are the top 10 takeaways every long-term multifamily investor should know:

Multifamily Takes the Top Spot

For the first time in years, multifamily surpassed industrial as the most favored asset class for the next decade. Institutions are placing their bets where renters are headed ,and so should we.

Cap Rates Have Likely Peaked

Survey respondents overwhelmingly believe we’ve seen the top of the cap rate cycle. Translation? We’re entering an era of cap rate stability or even compression. Buying now means locking in higher yields before they tighten further.

Infill Markets Signal Staying Power

Major metros like Boston, New York, Chicago, and San Francisco continue to command the lowest cap rates (4–5%). These aren’t markets for everyone, but they set the standard for resilience and long-term rent demand.

Suburbs Still Pay a Premium

Suburban submarkets in places like Dallas, Orlando, and Phoenix offer 50–100 basis points more yield than infill. That’s extra cash flow today while still benefiting from growth corridors.

The Midwest = Reliable Floor of Income

Chicago, Cincinnati, Minneapolis, these aren’t flashy markets, but their stable cap rates and diversified economies create dependable long-term income streams.

Southeast Growth Corridors Shine

Atlanta, Charlotte, and Raleigh-Durham offer a sweet spot: moderate cap rates plus migration and job growth. Perfect for investors balancing yield with appreciation potential.

Macro Volatility = Buyer Opportunity

Tariffs and global uncertainty are slowing CRE transaction volume. Fewer deals getting done means less competition, and more negotiating power for buyers ready to move.

Office Struggles Highlight Multifamily’s Safety

Office cap rates are ballooning to 8–12%. That ongoing distress only strengthens multifamily’s reputation as the safe, reliable choice for long-term capital.

Value-Add Still Works

Unlike other sectors, value-add multifamily hasn’t seen spreads widen much between stabilized and repositioned assets. Management-driven improvements (without construction headaches) remain a proven strategy.

Think in Decades, Not Months

The survey stresses short-term uncertainty but long-term conviction in multifamily’s performance. That’s exactly the mindset we teach: buy in places people will rent 30 years from now, not just today.

Final Word

The CBRE survey is clear: multifamily is the most resilient, most institutionally favored sector heading into the next decade. For mid-sized investors, that means focusing on durable markets, locking in today’s yields, and building portfolios designed to outlast short-term noise.

Now is the time to double down on strategies that generate a reliable floor of income, because renters aren’t going anywhere.