RealtyRates.com                                                                     4th Quarter, 2014


Market Commentary

RealtyRates.com™ Investor Survey Cap Rate Indices Decline For All Property Types During 3rd Quarter 2014

Consistent with a nine 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 six basis points during the 3rd Quarter of 2014, 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 Golf sector, down nine points, followed by the Apartment, Mobile Home/RV Park, Restaurant, Self Storage and Special Purpose sectors, all down seven basis points during the same period.

The smallest quarter-over-quarter cap rate index decrease was recorded by the Industrial, Office and Retail sectors, all down five basis points during the 3rd Quarter.

Mortgage terms again eased a bit overall during the 3rd Quarter, although spreads increased for all property types, while equity dividend rates were down somewhat overall.

Historical Cap Rate Indices


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