RealtyRates.com Investor Survey Cap Rate Indices Decline For All Property Types During 2nd Quarter 2014
Consistent with a fifteen 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 seven basis points during the 2nd Quarter of 2014, with all of the 11 property categories also recording cap rate index decreases during the quarter.
As with the previous quarter, albeit at less than half the rate, the greatest quarter-over-quarter cap rate index decrease was recorded by the Office sector, down nine points, followed by the Apartment, Mobile Home/RV Park and Self Storage sectors, all down eight basis points during the same period.
The smallest quarter-over-quarter cap rate index decrease was recorded by the Healthcare/Senior Housing and restaurant sectors, both down five basis points during the 2nd Quarter.
Mortgage terms again eased a bit overall during the 2nd Quarter, although spreads increased for all property types except Golf Courses, while equity dividend rates were down somewhat overall.