WASHINGTON, DC—Commercial property asset values have beensteadily rising since the end of the recession, bolstering thesector's recovery and providing hope that the next wave of debtmaturities will be able to find refinancing.

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Could that streak be coming to an end? Survey respondents—atleast some survey respondents--to the Real EstateRoundtable's Q2 Sentiment Index think it is possible.

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Despite improving net operating income, views on future assetvalues are mixed: Some respondents believe that a looming uptick ininterest rates will cause cap rates to rise; others say there issome cushion given the current cap rate spreads.

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A chart from Green Street Capital last monthshows just how much the pace of appreciation has slowed since lastsummer. Cap rates haven't changed since last summer, but higherproperty income means values have been slowly moving higher, PeterRothemund, an analyst at Green Street Advisors, said when the GreenStreet Commercial Property Index was released at the beginning ofApril.

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"That pattern probably continues for a while."

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Erika Morphy

Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.