RealtyRates.com                                                                     3rd Quarter, 2018


Market Commentary

RealtyRates.com™ Investor Survey Reports Cap Rate Index Increases For Most Property Types During 2nd Quarter 2018

Coincident with a 10 basis point increase in Treasury rates to which most commercial mortgage interest rates are indexed and a one basis point increase in equity dividend rates, the RealtyRates.com#0153; Investor Survey Weighted Composite (Cap Rate) Index increased four basis points, from 9.60 to 9.64 percent during the 2nd Quarter of 2018.

The greatest quarter-over-quarter cap rate index increases were recorded by the Lodging and Self Storage sectors, both up six basis points.

The smallest quarter-over-quarter cap rate index increases were recorded by the Apartment and Healthcare/Senior Housing sectors, both up three basis points. Meanwhile, the Office sector was unchanged during the 2nd Quarter.

Mortgage lending standards were relatively unchanged during the 2nd Quarter, however spreads were down an average 11 basis points resulting in a one basis point decrease in the average permanent mortgage interest rate.

Historical Cap Rate Indices


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