Posted by Wayne IL on July 23, 2003 at 14:25:54:
For an investment grade (S & P Rating “A” or better), spread would range from 160 to 240 bps over interpolated 10 yr UST.
Spreads vary substantially by lender type, location of the property, demographics as well as credit rating quality. Cap rates are running about the same as the interest rate on borrowed money . . . most deals are 1031s where the borrower needs to find a place for his money.