3rd Quarter, 2015

Market Commentary™ Investor Survey Reports Modest Cap Rate Index Increase For Most Property Types During 2nd Quarter 2015

Coincident with a 22 basis point increase in Treasury rates to which most commercial mortgage interest rates are indexed, the Weighted Composite (Cap Rate) Index™ similarly rose 11 basis points, from 9.31 to 9.42 percent during the 2nd Quarter of 2015, with all but one of the 11 property categories recording cap rate index increases during the quarter.

The greatest quarter-over-quarter cap rate index increase was recorded by the Golf sector, up 16 basis points, followed by the Special Purpose sector, down 15 basis points during the same period.

The only quarter-over-quarter cap rate index decrease was recorded by the Self Storage sector, down one basis point during the 2nd Quarter.

Mortgage terms again eased a bit overall during the 2nd Quarter, however spreads increased somewhat for all property types, while equity dividend rates were unchanged overall.

Historical Cap Rate Indices

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