RealtyRates.com                                                                     4th Quarter, 2022


Market Commentary

RealtyRates.com™ Investor Survey Reports Modest Cap Rate Index Increases For All Property Types During 3rd Quarter 2022

Coincident with an 13 basis point increase in Treasury rates to which most commercial mortgage interest rates are indexed, together with a six point decrease in equity dividend rates, the RealtyRates.com™ Weighted Composite (Cap Rate) Index™ increased seven basis points from 9.26 to 9.33 percent during the 3rd Quarter of 2022.

The greatest quarter-over-quarter cap rate index increase during the 3rd Quarter were recorded by the Mobile Home/RV Park sector, up 10 basis, followed by the Restaurant sector, up nine basis points.

The smallest quarter-over-quarter cap rate index increase during the 3rd Quarter was recorded by the Special Purpose sector, up one basis point, followed by the Lodging sector, up three basis points.

Mortgage lending standards tightened on weaker demand for all commercial real estate loan categories during the 3rd Quarter. Meanwhile spreads were up six basis points overall while average permanent mortgage rates were up 15 basis points.

Historical Cap Rate Indices


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