Market Commentary RealtyRates.com™ Investor Survey Reports Modest Cap Rate Index Increases For All Property Types During 2nd Quarter 2025 Coincident with a 14 basis point increase in Treasury rates to which most commercial mortgage interest rates are indexed, together with no movement in the mean equity dividend rate, the RealtyRates.com™ Weighted Composite (Cap Rate) Index™ increased nine basis points from 9.97 to 10.06 percent during the 2nd Quarter of 2025. The greatest, quarter-over-quarter cap rate index increases during the 2nd Quarter was recorded by the Office and Special Purpose sectors, both up 10 basis points. Meanwhile, the Lodging and Healthcare/Senior Housing sectors recorded the smallest quarter-over-quarter cap rate index increases during the 2nd Quarter, with both up seven basis points. Mortgage lending standards continued to tighten on decreased demand for all commercial real estate loan categories except Apartments which remained unchanged during the 2nd Quarter. Meanwhile, spreads were down one basis point overall, while average permanent mortgage rates were up 13 basis points.