RealtyRates.com                                                                     2nd Quarter, 2015


Market Commentary

RealtyRates.com™ Investor Survey Reports Modest Cap Rate Index Contraction For All Property Types During 1st Quarter 2015

Consistent with a 35 basis point decrease in Treasury rates to which most commercial mortgage interest rates are indexed, the RealtyRates.com Weighted Composite (Cap Rate) Index™ similarly declined 15 basis points during the 1st Quarter of 2015, with all of the 11 property categories also recording cap rate index decreases during the quarter.

The greatest quarter-over-quarter cap rate index decrease was recorded by the Lodging sector, down 22 basis points, followed by the Mobile Home/RV Park sector, down 21 basis points during the same period.

The smallest quarter-over-quarter cap rate index decrease was recorded by the Apartment sector, down 11 basis points during the 1st Quarter, followed by the Healthcare/Senior Housing, Industrial, Retail and Self Storage sectors, all down 13 basis points.

Mortgage terms again eased a bit overall during the 1st Quarter, spreads likewise decreased for all property types, while equity dividend rates were unchanged overall.

Historical Cap Rate Indices


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