Coming on the heels of several years of lower cap rates that pushed prices steeply upwards, the U.S. real estate market appears poised for a correction. The only question is how much. The correction could be steep if cap rates revert to historical norms. However, if one takes a range of other factors into consideration -- such as relative value to Treasury yields and the emergence of the real estate capital markets -- the more likely scenario is a modest drop in prices.