Wouldn't hire interest rates lower asset pricing not increase it?
This article written from Globe St is saying that the rising 10 yr synonymously speaking with rising cap rates will increase the asset pricing. This makes no sense to me, shouldn't it lower the price of the asset or property since the cost to borrower increases, meaning liquidity will dry up for new acquisitions? 

[https://www.globest.com/2022/09/19/commercial-real-estate-remains-a-critical-investment-asset-even-as-cap-rates-rise/?slreturn=20220824150729](https://www.globest.com/2022/09/19/commercial-real-estate-remains-a-critical-investment-asset-even-as-cap-rates-rise/?slreturn=20220824150729)

I have a Debt Originations Analyst interview and REIT Financing interview this upcoming week and I have no formal CRE experience, so I am just trying to understand. Any tips or resources will be appreciated.
[{"id": "ipr9t4h", "text": "I think it\u2019s a typo. Higher interest rates = higher cap rates = lower asset prices. Liquidity didn\u2019t necessarily dry up right now but buyers are waiting and watching and sellers have not fully grasped that their asset worth $100 last year is worth less today. Multi cap rates have widened 50-100bps already. \n\nCheck out the term negative leverage, it is when interest rates are higher than cap rates resulting in a lower cash on cash return than if you were to buy the asset all cash.", "replies": [{"id": "ipsm302", "text": "Definitely think liquidity for syndicators is drying up, especially since debt fund 85% ltc is out the door. Agree on the cap rate expansion - institutional grade sunbelt deals that were trading at low 3 tax adjusted caps are now being priced at 4% minimum. Brokers have to price there to get groups to look at them. Would say the big change is the amount of \u201climited marketing\u201d offerings out there. There\u2019s still a ton of LPs that have obviously done well but want out and aren\u2019t fucking around with buyers that don\u2019t have discretionary capital and/or sensitivities to leverage. I think we see cap rates blow out when rent rolls go through one more turn. Right now on a lot of deals you still have half units at a hypothetical $1500 and the other half $200-300 below and buyers can build into positive leverage with the embedded mark to market. Once that rent roll is tapped out, buyers are going to need a serious cap rate adjustment to make sense of it. Ultimately I think that the bumpy roads ahead are going to show who is an actual operator vs who\u2019s just good at buying deals. Time to start making money the old way actually putting capital into the deal and creating value", "replies": [], "depth": 2}], "depth": 1}, {"id": "ipt1y2v", "text": "You're highered!", "replies": [{"id": "ipt3o19", "text": "Lamo typo", "replies": [], "depth": 2}], "depth": 1}, {"id": "iq0i2eo", "text": "He's speaking on Exit Cap Rates being correlated the 10 year and producing that effect. This also assumes NOI remains flat for example purposes.\n\nThink of folks in MF bridge loans right now, who purchased in Jan '22 at a price that indicates a 4% cap.\n\n2024 rolls around, we are still in recession...10 year is above 4%..Because of the last two years of hammering by the Fed, sellers finally got the message that it's not 2021..Buyers are now able to purchase at prices that indicate a 5% cap.\n\nBridge loan gal needs to refinance. Agency, as-is appraisal comes in, indicating a 5% cap valuation...remember NOI is flat for this example so with no movement on revenues, the effect of decreasing values on the exit side is achieved.\n\nMoody's wrote an excellent report that shows this effect on this back in March..take a look at Exhibit 4:\nhttps://ma.moodys.com/rs/961-KCJ-308/images/Intrate-Caprate-Inflation.pdf\n\nAs they mention the key is cash flow movement to counter cap rate expansion. This is the \"value-add\" game we've been playing the last few years..paying the seller a premium for potential, unrealized cash flows in the form of a higher purchase price on the promise of big rent increases. Now the games begin as people pray renter-consumers hold up against the Fed's slaughter and forced recession that is ultimately aimed at killing jobs enough to cool down the economy.", "replies": [], "depth": 1}]