EFTA Document EFTA01388639

CBDs. Softening fundamentals in downtown submarkets have not deterred investors: we estimate that the average going in cap rate for urban core product remains at 4.5% in our 26 investable markets, with many prime assets trading under 4.0%.4$ The lofty prices investors are willing to pay for CBD assets helps explain why developers continue to build downtown despite softening fundamentals. These neighborhoods are potentially at risk of further supply build-up in the outer years of our forecast