Rise in cap rates can lead to a decline in share prices if investors perceive it as an indicator of increased risk or reduced demand for the property. This may result in higher yields for investors, but it could also signal a potential downturn in the real estate market.

In contrast, a fall in cap rates could lead to an increase in share prices and lower yields for investors if investors perceive it as an indicator of reduced risk or increased demand for the property. This is because a lower cap rate implies a higher valuation for the property and could result in greater returns for investors.

Overall, investor sentiment and market conditions play a significant role in determining the relationship between cap rates and share prices. While a high expectation of cap rates can lead to a decline in share prices and higher yields for investors, it is not always a reliable indicator of actual property income or future returns on investment.

graham73      ( Date: 28-Aug-2023 08:43) Posted: In the US, while big tenants are downsizing office space, there are growing number of SMEs/ start-ups which are opting for co-working space, and are popular with employees because of the location/time/social flexibility. Prime and Keppel Oak could collaborate with Singapore or Asia co-working companies, like JustCo, The Hive, The Executive Centre, The Great Room (by Industrious) - which have tens of offices in APAC, but none yet in US. US is where the big scale is, which will not be a surprise if this is on their expansion plans. The current downturn is a good opportunity for them to peetrate with lower cost entry barriers. If they work together, it will not be for a single office location, but multiple office locations - to yield economies of scale of management. To lower cost of barrier for Asia co-working companies, they could look at business model of base fee + revenue-sharing. https://www.nytimes.com/2023/05/31/business/co-working-spaces-corporate-workers.html https://www.nytimes.com/2022/05/17/technology/coworking-spaces-wework.html https://www.justcoglobal.com/sg/ https://thehive.com/ https://www.executivecentre.com/en-sg/locations/ https://thegreatroom.co/ (part of global Industrious chain)