RealtyRates.com Investor Survey Reports Cap Rate Index Increases For All Property Types During 4th Quarter 2017
Coincident with a 14 basis point increase in Treasury rates to which most commercial mortgage interest rates are indexed and a five basis point decline in equity dividend rates, the RealtyRates.com Weighted Composite (Cap Rate) Index increased six basis points, from 9.33 to 9.39 percent during the 4th Quarter of 2017.
The greatest quarter-over-quarter cap rate index increase was recorded by the Golf sector, up eight basis points, followed by the Healthcare/Senior Housing, Mobile Home/RV Park, Office and Self Storage sectors, up seven basis points during the same period.
The smallest quarter-over-quarter cap rate index increase was recorded by the Lodging sector, up five basis points, while all other sectors were up six basis points during the 4th Quarter.
Mortgage lending standards were relatively unchanged during the 4th Quarter as were spreads, although average permanent mortgage interest rates increased 36 points.