Real Estate News & Advice

August 25, 2004 — In spite of a significant jump in Treasury rates to which most commercial mortgage interest rates are indexed, the RealtyRates.com? Investor Survey weighted composite cap rate index dropped 12 basis points to 9.66% during the 2nd quarter of 2004.

Of the 11 income-producing property categories tracked as part of the Investor Survey, five recorded slight increases averaging 2.8 basis points, while an equal number recorded significant decreases averaging 39.8 basis points. One category, the Retail sector, remained unchanged.

Leading the gainers were the Industrial and Restaurant sectors, both of which recorded five basis point increases to 9.57% and 11.03%, respectively. The most dramatic decrease was recorded by the Lodging sector with a 74 basis point drop to 10.55%.

The RealtyRates.com? Investor Survey provides a quarterly compilation of mortgage and equity requirements and capitalization and discount rates for 32 income-producing property types.

Headquartered in Bradenton, Florida, RealtyRates.com (http://www.RealtyRates.com), operates a comprehensive, Web-enabled, integrated service designed to provide government agencies and private industry with timely investment, financial, and operating data essential to the evaluation, marketing, and disposition of income-producing property. The firm’s three quarterly market data surveys are widely utilized by banks, commercial real estate professionals, investors, developers, and property tax assessment authorities throughout the country.