Commercial property valuations have been shaking off rising interest rates, with cap rates for many property types continuing to tighten.

Apartment cap rates tightened in second quarter 2017, even though the Federal Open Market Committee raised the target federal funds rate in March and June. The mean apartment cap rate fell 30 basis points in the second quarter to 5.7 percent from 6.0 percent in the three prior quarters, according to Reis.

Office sector cap rates have seen more volatility than apartment sector cap rates. After climbing 40 basis points to 7.4 percent in the first quarter, the average office cap rate fell to 7.2 percent in the second quarter, according to Reis. The 12-month rolling average office cap rate edged up slightly to 7.2 percent from 7.1 percent in the second quarter, making way for a possible increase in office property transactions in upcoming quarters, reports Reis. Since 2013, the 12-month rolling average office cap rate has stayed below th