For the past year, apartment buildings have been one
of the few bright spots in the real-estate industry as people forced
out of the home-buying market by foreclosures or the credit crunch have
turned to renting.
Apartment building cap rates dropped .25%
from the Q207 to Q208.
The cap rates are now at levels last seen at the end of 2004.
Lower prices have led to an increase in transactions. Sales in June were "well
above" figures for recent months, with $5.5 billion already having closed
or in contract in Q3 compared with $8.7 billion
in Q2.