RealtyRates.com Investor Survey Cap Rate Indices Decline For All Property Types During 3rd Quarter 2014
Consistent with a nine 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 six basis points during the 3rd Quarter of 2014, with all of the 11 property categories also recording cap rate index decreases during the quarter.
The greatest quarter-over-quarter cap rate index decrease was recorded by the Golf sector, down nine points, followed by the Apartment, Mobile Home/RV Park, Restaurant, Self Storage and Special Purpose sectors, all down seven basis points during the same period.
The smallest quarter-over-quarter cap rate index decrease was recorded by the Industrial, Office and Retail sectors, all down five basis points during the 3rd Quarter.
Mortgage terms again eased a bit overall during the 3rd Quarter, although spreads increased for all property types, while equity dividend rates were down somewhat overall.