Market Commentary RealtyRates.com™ Investor Survey Reports Modest Cap Rate Index Decreases For All Property Types Except Office and Special Purpose During 1st Quarter 2024 Coincident with a 20 basis point decrease in Treasury rates to which most commercial mortgage interest rates are indexed, together with a seven basis point increase in equity dividend rates, the RealtyRates.com™ Weighted Composite (Cap Rate) Index™ decreased seven basis points from 9.95 to 9.89 percent during the 1st Quarter of 2024. The greatest, quarter-over-quarter cap rate index decreases during the 1st Quarter were recorded by the Self Storage sector, down 18 basis points, followed by the Industrial sector, down 10 basis points. Meanwhile, the smallest quarter-over-quarter cap rate index decreases were recorded by the Retail and Restaurant sectors, both down one basis point, followed by the Office sector which recorded no change during the 1st Quarter. Mortgage lending standards continued to tighten on weaker demand and higher risk for all commercial real estate loan categories during the 1st Quarter. Meanwhile, although spreads were up two basis points overall, average permanent mortgage rates were down 28 basis points.