RealtyRates.com Investor Survey Cap Rate Indices Increased For Most Property Types During 1st Quarter 2013
Reflecting a 33 basis point increase in Treasury rates to which most commercial mortgage interest rates are indexed, the RealtyRates.com Investor Survey Weighted Composite (Cap Rate) Index likewise increased a rounded two basis points from 9.55% to 9.56% during the 1st Quarter of 2013. Seven of the 11 property categories recorded cap rate index increases during the quarter.
The greatest quarter-over-quarter cap rate index increase was recorded by the Restaurant sector, up 11 basis points, followed by the Special Purpose sector up 10 basis points during the same period.
The greatest quarter-over-quarter cap rate index decrease was recorded by the Retail sector, down five basis points, followed by the Golf, Healthcare/Senior Housing and Office sectors, all down one basis point during the same period.
Mortgage terms again eased a bit overall during the 1st Quarter and spreads also decreased slightly for most property types, as did equity dividend rates.