📉 Cap Rate Spread Explained: The Hidden Metric Smart CRE Investors Watch 📈

Bill Rapp, CRE Broker

Published on: 27/12/2025

Cap Rate Spread: The Hidden Metric Pros Watch Most commercial real estate investors obsess over cap rates and interest rates independently. Professionals, however, focus on the cap rate spread—the difference between a property’s capitalization rate and prevailing borrowing costs. This spread quietly determines deal safety, pricing pressure, refinancing risk, and long-term returns.