Market Commentary RealtyRates.com™ Investor Survey Reports Cap Rate Index Decreases For All Property Types During 3rd Quarter 2024 Coincident with a 70 basis point decrease in Treasury rates to which most commercial mortgage interest rates are indexed, together with a one basis point increase in average equity dividend rates, the RealtyRates.com™ Weighted Composite (Cap Rate) Index™ decreased 31 basis points from 10.01 to 9.70 percent during the 3rd Quarter of 2024. The greatest, quarter-over-quarter cap rate index decrease during the 3rd Quarter was recorded by the Restaurant sector, down 62 basis points, followed by the Golf sector, down 57 basis points. Meanwhile, the smallest quarter-over-quarter cap rate index decrease was recorded by the Office sector, down three basis points, followed by the Industrial sector, down 26 basis points. Mortgage lending standards continued to tighten on weaker demand and higher risk for all commercial real estate loan categories during the 3rd Quarter except multi-family properties which were loosened somewhat. Meanwhile, although spreads were up two basis points overall, average permanent mortgage rates were down 61 basis points.