The prime rate and three-month Libor have risen half a percentage point, the Boulder Group notes, since early this summer. "These increases have left owners with two main options," according to the report authored by research director Jeff Rothbart. "Either place permanent financing at even higher rates or dispose of the property. The market data shows that investors are choosing disposition."
Despite the increase in properties on the market, capitalization rates have remained even, according to the Boulder Group's research. Cap rates are not likely to move until interest rates rise by more than a half-point to full percentage point, according to the company's report.
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