Market Commentary RealtyRates.com™ Investor Survey Reports Cap Rate Index Decreases For All Property Types During 1st Quarter 2023 Coincident with an 14 basis point decrease in Treasury rates to which most commercial mortgage interest rates are indexed, together with a 14 point decrease in equity dividend rates, the RealtyRates.com™ Weighted Composite (Cap Rate) Index™ decreased 15 basis points from 9.88 to 9.73 percent during the 1st Quarter of 2023. The greatest quarter-over-quarter cap rate index decrease during the 1st Quarter were recorded by the Special Purpose sector, down 20 basis points, followed by the Healthcare/Senior Housing sector, down 18 basis points. The smallest quarter-over-quarter cap rate index decrease during the 1st Quarter was recorded by the Restaurant sector, down 11 basis points, followed by the Retail sector, down 12 basis points. Mortgage lending standards tightened on weaker demand for all commercial real estate loan categories during the 1st Quarter. Meanwhile spreads were up one basis point overall yet average permanent mortgage rates were down 13 basis points.