The 10-year Treasury yield is the benchmark rate that drives commercial real estate valuations. CRE loans, especially CMBS, are typically priced as a spread over the 10-year. When yields fall, borrowing costs decrease and property values tend to rise. Cap rate spreads over the 10-year determine whether investors achieve positive leverage — earning more from property income than they pay in debt service. A wider spread signals stronger risk-adjusted returns for NNN investors.