Puget Sound Cap Rates Hold Near 5.5% as 10-Year Treasury Tests 5%

With the 10-year Treasury yield sitting around 5 percent and the Federal Reserve back in tightening mode, Puget Sound apartment and industrial cap rates have held near 5.5 percent, leaving almost no premium over risk-free bonds, while office pricing has split between owner-users paying up and investors buying distressed towers at a fraction of their former value.