Cap rate suppression - has it changed your investment strategy❓

[Brian Pownall]

I thought the graph below from NorthMarq's 1Q21 Capital Report was interesting with the spread between major market and non-major market cap rates falling to the tightest spread in over a decade. Definitely have seen this movement across the various markets we are underwriting and making offers in. I know some folks seek secondary or tertiary markets for lower entry points, but with the cap rate movement nationwide has this changed your strategy?

[Marc Rice]

@Brian Pownall

The access to capital is at some of the highest levels we’ve seen.

I personally still buy good cash flowing value add deals in A/B markets in Columbus and plan to hold them for the long term. It’s very tempting to jump on stuff now because it’s so hot but it’s definitely not the right move.