RealtyRates.com Investor Survey Reports Modest Cap Rate Index Contraction For All Property Types During 1st Quarter 2015
Consistent with a 35 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 15 basis points during the 1st Quarter of 2015, 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 Lodging sector, down 22 basis points, followed by the Mobile Home/RV Park sector, down 21 basis points during the same period.
The smallest quarter-over-quarter cap rate index decrease was recorded by the Apartment sector, down 11 basis points during the 1st Quarter, followed by the Healthcare/Senior Housing, Industrial, Retail and Self Storage sectors, all down 13 basis points.
Mortgage terms again eased a bit overall during the 1st Quarter, spreads likewise decreased for all property types, while equity dividend rates were unchanged overall.