2nd Quarter, 2017

Market Commentary™ Investor Survey Reports Cap Rate Index Decreases For Most Property Types During 1st Quarter 2017

Coincident with a five basis point increase in Treasury rates to which most commercial mortgage interest rates are indexed and a three basis point decline in equity dividend rates, the Weighted Composite (Cap Rate) Index™ decreased 16 basis points, from 9.61 to 9.45 percent during the 1st Quarter of 2017.

The greatest quarter-over-quarter cap rate index decrease was recorded by the Office sector, down 38 basis points, followed by the Self Storage sector, down 26 basis points during the same period.

The only quarter-over-quarter cap rate index increases were recorded by the Lodging and Mobile Home/RV Park sectors, up three and one basis points, respectively.

Mortgage lending standards were relatively unchanged during the 1st Quarter and spreads were likewise unchanged although interest rates were up an average five basis points.

Historical Cap Rate Indices

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