RealtyRates.com                                                                     3rd Quarter, 2016


Market Commentary

RealtyRates.com™ Investor Survey Reports Modest Cap Rate Index Decrease For Most Property Types During 2nd Quarter 2016

Contrary to a three basis point increase in Treasury rates to which most commercial mortgage interest rates are indexed, the RealtyRates.com Weighted Composite (Cap Rate) Index™ decreased a similarly modest three basis points, from 9.36 to 9.33 percent during the 2nd Quarter of 2016.

The greatest quarter-over-quarter cap rate index decrease was recorded by the Special Purpose sector, down 14 basis points, followed by the Office sector, down 10 basis points during the same period.

The greatest quarter-over-quarter cap rate index increase was recorded by the Apartment sector, up seven basis points, followed by the Restaurant sector, up two basis points.

Mortgage terms remained largely unchanged overall during the 2nd Quarter, with spreads down an average five basis points, while equity dividend rates were down an average two basis point

Historical Cap Rate Indices


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