RealtyRates.com                                                                     1st Quarter, 2014


Market Commentary

RealtyRates.com™ Investor Survey Cap Rate Indices Somewhat Mixed During 4th Quarter 2013

Reflecting an 81 basis point increase in Treasury rates to which most commercial mortgage interest rates are indexed, the RealtyRates.com Weighted Composite (Cap Rate) Index™ remained unchanged at 9.65% during the 4th Quarter of 2013, although eight of the 11 property categories recorded cap rate index decreases during the quarter.

The greatest quarter-over-quarter cap rate index increase was recorded by the Retail sector, up 20 basis points, followed by the Office sector, up 11 basis points during the same period.

The greatest quarter-over-quarter cap rate index decrease was recorded by the Lodging sector, down 17 basis points, followed by the Industrial sector, down nine basis points during the 4th Quarter.

Mortgage terms again eased a bit overall during the 4th Quarter, although spreads increased slightly for most property types, while equity dividend rates were down somewhat for all property types.

Historical Cap Rate Indices


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