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Economist Ken Rosen: The Bay Area’s Cheap-Leverage Era Is Over, and Cap Rates Must Rise

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Aerial view of south San Francisco bay area, Milpitas, California
Photo by Sundry Photography on iStock
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Speaking on CBRE's podcast The Weekly Take, veteran economist Ken Rosen said the end of a 17-year run of cheap money will force Northern California investors to manufacture returns through leasing and operations, brace for higher cap rates, and court the patient private capital flowing back into real estate.

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