RealtyRates.com                                                                     2nd Quarter, 2010


Market Commentary

RealtyRates.com™ Investor Survey Cap Rate Indices Increase For All Property Types During 1st Quarter 2010

Consistent with a 29 basis point decline in Treasury rates to which most commercial mortgage interest rates are indexed, the RealtyRates.com™ Investor Survey Weighted Composite (Cap Rate) Index™ IndexTM increased 17 basis points, from 9.99% to 10.16% during the 1st Quarter of 2010.

All property sectors surveyed recorded quarter-over-quarter index increases with the greatest recorded by the Self Storage sector, up 22 basis points, followed by the Restaurant sector with a 19 basis point gain. At 16 basis points, the Apartment and Healthcare/Senior Housing sectors recorded the smallest increases during the 1st Quarter.

The deterioration in the commercial real estate market, as evidenced by the indicated increase in the Weighted Composite (Cap Rate) Index™ during the 1st Quarter, was further compounded by continuing declines in net operating income across virtually all markets and property types, nationwide.

Historical Cap Rate Indices


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