When do cap rates change?

[Jay Pillalamarri]

Hey guys, I wanted to ask the experienced MF investors the following (from an economic cycle standpoint)-

1. When does the cap rate of a local neighborhood/market change? What are the economic factors which affects the cap rates?
2. How fast/slowly does it change?
3. How do you factor that into your investment strategy (2-5 year strategy)? E.g. If you are buying in low cap rate markets and foresee that they can increase (thus bringing down the value of your asset)...what do you do?