RealtyRates.com                             4th Quarter, 2009


Market Commentary

RealtyRates.com™ Investor Survey Cap Rate Indices Increase For All Property Types During 3rd Quarter 2009

Consistent with a 30 basis point jump in Treasury rates to which most commercial mortgage interest rates are indexed, the RealtyRates.com™ Investor Survey Weighted Composite (Cap Rate) Index™ increased 18 basis points, from 9.85% to 10.03% during the 3rd Quarter of 2009.

All 11 property sectors surveyed recorded quarter-over-quarter index increases with the greatest recorded by the Lodging sector, up 21 basis points.

Meanwhile, the remaining 10 sectors were evenly divided between 17 and 18 point basis point increases over the 2nd quarter.

Historical Cap Rate Indices

The deterioration in the commercial real estate market, as evidenced by the indicated increase in the Weighted Composite (Cap Rate) IndexTM during the 3rd quarter, was further compounded by continuing declines in net operating income across virtually all markets and property types, nationwide.


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