RealtyRates.com Investor Survey Cap Rate Indices Increased For All Property Types Except Apartments During 3rd Quarter 2013
Reflecting an 81 basis point increase in Treasury rates to which most commercial mortgage interest rates are indexed, the RealtyRates.comTM Investor Survey Weighted Composite (Cap Rate) Index likewise increased 17 basis points from 9.48% to 9.65% during the 3rd Quarter of 2013. Ten of the 11 property categories recorded cap rate index increases during the quarter.
The greatest quarter-over-quarter cap rate index increase was recorded by the Restaurant sector, up 36 basis points, followed by the Lodging and Mobil Home/RV Park sectors, both up 34 basis points during the same period.
The only quarter-over-quarter cap rate index decrease was recorded by the Apartment sector, down 10 basis points during the 3rd Quarter.
Mortgage terms again eased a bit overall during the 3rd Quarter, although spreads increased slightly for most property types, while equity dividend rates were down somewhat for all property types.